When do I make payments on account?

You'll usually have to make two payments on account for the current year's tax:

• One by 31 January in the current year.
• One by the following 31 July.

Each payment is half of the tax due for the previous year.

For example, for the tax year 2023-24 (6 April 2023 to 5 April 2024), the first payment on account will be due on 31 January 2024. The second payment on account will be due on 31 July 2024.

Exemption

There are some circumstances in which a payment on account will not be due. If your tax bill for the previous year was less than £1,000 after PAYE or other deductions at source, you won't need to make a payment on account. Similarly, no payment on account will be due if, in the previous tax year, 80% or more of your tax was deducted at source.

For example, if your liability is under £1,000 in 2023–24, you'll make a single payment on 31 January 2025, instead of two payments on account.

Please note: Class 2 NIC payments are not considered for the calculation of payments on account however, Marriage Allowance (if any needs to be deducted from the current year's tax liability (added back) before the calculation for payments on account can be completed.