Payment on Account

Payment on Account

by admin

Payment on account due to HMRC?

Are you set for the deadlines 31st January and 31st July?

If you split your payment on account to HMRC, key deadlines can affect you, especially if you can’t afford to pay these liabilities, when they fall due.

Payments are made twice a year by Self-Employed people – 31st January and 31st July.

Payment on account is due to HMRC by most sole traders and the 31st July is looming, possibly one of the most dreaded days in a Self-Employed persons calendar.

These were originally designed as a way of helping those that are Self-Employed spread their tax bills. The problem is that for some people making their payment on account is often resulting in financial hardship, particularly for those already having difficulty making payments to HMRC.

As the payment on account is calculated by looking at your previous years tax bill, it can cause untold issues when your current income has fluctuated. Record keeping is a key element in maintaining your tax records and more importantly, it will help you keep an eye on upcoming bills – so you won’t receive any nasty surprises.

“So what’s next if you can’t make the payment on account to HMRC?”

If you don’t think you are going to be able to make your payment on account, or any tax due for that matter, it is important to seek advice from external agents and contact them as a matter of urgency. The sooner you discuss options with them the sooner you may be able to reach a Time to Pay Arrangement.

HMRC will consider ‘payment proposals’ but they are given as a concessionary basis and the process is not always straight forward. They have become more aggressive in their pursuit of unpaid tax bills and legal action is starting earlier and more quickly these days. It is important to act fast.

“Don’t ignore it – Seek help”

It is vital that you do not ignore a tax bill or your payment on account when it is due. Doing so will only make the problem worse, interest and penalties can apply and will start to mount up quickly.

In some instances, Self-Employed people find they just cannot come to an arrangement, or they cannot meet the payment terms and / or re-payment time criteria HMRC are looking for and the bill begins to escalate quickly. There is help out there, you are not on your own.

Tax Debts Help and Advice is a company that has been set up purposely to help those that cannot pay their tax bills in full an on time. With over two decades experience, we have helped our clients come to acceptable, affordable solutions with HMRC.

So if you are struggling with a tax bill or payment on account, then give our friendly team a call on 0800 448 0293. Alternatively, you can start a live chat on our website, fill in the contact from below or email

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