What is a payment on account?
If your personal tax bill for the year ended 5th April 2018 exceeded £1,000, you will likely be required to make a payment on account of the year ended 5th April 2019. This would have been made up of half your tax bill upfront in January 2019, and another half in July 2019. This means that by the 31st July 2019, you should be paid HMRC the equivalent tax for the year ended 5th April 2019, as you did for the year ended 5th April 2018.
When is the payment on account due?
The second payment on account for the year ended 5th April 2019, is due by the 31st July 2019.
How much do I owe and where do I make the payment?
If a payment on account is required, HMRC will have written to you at your home address requesting payment of this, prior to the deadline. If you are unsure of how much to pay or have not received a statement from HMRC, please speak with your dedicated accountant for payment details and advice or check your completed Self-Assessment Return, for the year ended 5th April 2018.
I think I have paid too much tax, what can I do?
Please get in touch with your accountant as soon as possible. It is normally possible to reduce the payment on account, if your tax return for the year ended 5th April 2019, is completed prior to the deadline of 31st July 2019. If you make payment of the liability now and your calculated liability is less than the payments on account made, a refund can be requested when the tax return to 5th April 2019 is submitted.
I don’t think I have paid enough tax, what can I do?
The current payment on account is calculated based on the tax return submission for the year ended 5th April 2018. Any additional tax due for the year ended 5th April 2019 will be due by the 31st January 2020, along with a payment on account of the year ended 5th April 2020, if required.
I am not sure if I have already made the payment or if one is even required?
Please check with your dedicated accountant or log into your personal tax portal here for an up-to-date summary.