Over the years, Payments on Account have been a source of confusion for many taxpayers, particularly those who are new to the Self-Assessment system or whose tax liability has exceeded £1,000 for the first time.
Many individuals are often surprised to discover that settling their annual tax bill may also require advance payments towards the following year’s tax liability. Understanding how this system works can help you plan your finances better and avoid unexpected tax demands.
What Are Payments on Account?