Payment On Account Calculator

Payment on Account Calculator

Confused by HMRC’s Payment on Account system? Enter your Self Assessment tax bill and we’ll show you exactly what you owe and when — including whether you can apply to reduce your payments.

Your Tax Bill

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£0£100k
Find this on your SA302, or in your HMRC online account under “Self Assessment”


£

£0£100k
This is what your two POA payments were based on — each was half of this amount


£

£0£50k


£

£0£100k

Your Payment Schedule

Total: —

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Based on your figures, Payments on Account do not apply to you. This is because your Self Assessment bill is under £1,000, or more than 80% of your tax was collected at source (e.g. via PAYE). You only need to pay your balancing payment by 31 January.

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Important: If you apply to reduce your payments on account and your actual tax bill turns out to be higher than estimated, HMRC will charge interest on the difference. Only reduce if you are confident your income will be lower next year. You must apply via your HMRC online account or by completing form SA303.

How Payment on Account Works
What is it?
HMRC requires you to pay next year’s estimated tax in advance, in two instalments called “payments on account”. Each payment is half of your previous year’s Self Assessment bill.
When do I pay?
1st payment: 31 January — same deadline as your balancing payment for the previous year.

2nd payment: 31 July — six months later.

When does it apply?
Payments on account are required if your last Self Assessment bill was over £1,000 AND less than 80% of your tax was collected at source (e.g. via PAYE or savings interest).
Can I reduce them?
Yes — if you expect to earn less next year you can apply to HMRC to reduce your payments on account. Be careful: if you reduce too much, HMRC will charge interest on the underpayment.

Assumptions & Notes
Payments on account are required where the Self Assessment bill exceeds £1,000 and less than 80% of the liability was collected at source · Each payment on account = 50% of the previous year’s net tax bill (after deducting tax collected at source) · Balancing payment = actual tax owed minus payments on account already made · Where no prior POA payments were made, the full bill is due as a balancing payment · Where POAs were made, the balancing payment is the difference between the actual bill and the total POAs paid · Dates shown are standard HMRC deadlines · PAYE tax: find on your P60 under “Total tax deducted” · Savings interest tax: find on your bank’s annual tax certificate.

This calculator is for illustrative purposes only and does not constitute financial or tax advice. Tax rules are complex and individual circumstances vary. Always consult a qualified accountant or tax adviser.