Not sure of How to Pay Your Payment on Account, then you have come to the right place. If you need a brush up on what payments on account are, feel free to take a quick look here first.
When paying your payment on account tax liability you will need to use your unique taxpayer reference (UTR) followed by the letter “K” as your payment reference.
Your first payment on account is due by 31 January along with your balancing tax payment for your previous year.
Your second payment on account is due by 31 July.
Here are a few methods below on how you can pay your payment on account:
- online using a debit card or corporate credit card (HMRC charge a non-refundable fee for using a corporate debit card)
- bank transfer
- direct debit
- HMRC list a few more accepted payment methods here Pay your Self Assessment tax billhttps://www.gov.uk/pay-self-assessment-tax-bill. From April 2024 HMRC expect all taxpayers to keep digital records and submit returns through accepted and appropriate software. To understand how this changes your bookkeeping process read my blog on How Will Making Tax Digital (MTD) for Income Tax Affect You?
You can get more information on Payments on Account here.
Love,
Kimmy
As always just a reminder that I am an accountant but I am not your accountant, this blog is for information purposes and should not be taken as advice.