Payment on Account is a tax payment made twice a year by self employed people as a means to spread the cost of that year's tax liability.
The second payment is due 31st July 2019, for 2018/19 and the previous tax year ending 5 April.
Your bill for the 2017 to 2018 tax year is £3,000. You made 2 payments on account last year of £900 each (£1,800 in total).
The total tax to pay by midnight on 31 January 2019 is £2,700. This includes:
- Your ‘balancing payment’ of £1,200 for the 2017 to 2018 tax year (£3,000 minus £1,800)
- The first payment on account of £1,500 (half your 2017 to 2018 tax bill) towards your 2018 to 2019 tax bill
- You have to pay your second payment on account of £1,500 by midnight on 31 July 2019
If your tax bill for the 2018 to 2019 tax year is more than £3,000 (the total of your 2 payments on account), you’ll need to make a ‘balancing payment’ by 31 January 2020.
If you know your tax bill is going to be lower than last year, you can ask HM Revenue and Customs (HMRC) to reduce your payments on account. You can do this either online or by post.
Spread the cost your Self Assessment Tax Return
Covering the cost of your HMRC Tax bill is a regular and considerable expense and something an increasing number of businesses are choosing to finance and since 2018, you can no longer pay your bill with a personal Credit Card.
Finding a way to pay a self assessment tax bill can be hard when a significant sum needs to be found from business cash flow and as such, spreading the cost is an increasingly attractive option for many.
A short-term loan from White Oak UK is quick and easy to arrange, helping you to spread the cost of your tax bill over a 6, 10, or 12-month term. We’ve eliminated the red tape from our business, to make it faster and more convenient to get a loan.
- Options to pay monthly or quarterly
- Loan in as little as 24 hours
- Free up cash flow for other areas of your business
- No red tape
- A dedicated Account Manager
- Apply quickly and easily with E-sign loan documents
Act now before the deadline
Whilst over 93% of taxpayers filed their tax on time earlier this year, there were still more than 700,000 who missed the deadline.
If you are one of the many thousands of self-employed people due to pay your Self-Assessment Tax by July 31st then now is the time to start considering how you will cover this considerable cost.
Talk to us today on request a call back from our tax finance specialists to discuss your options.or