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  3. How do we work out payments on account?
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  3. How do we work out payments on account?

How do we work out payments on account?

When calculating the payments on account due for 2019/20, we look back to 2018/19, work out the tax due for this year – the tax due being tax liability less tax deducted at source – and we divide this by two. The resulting number is each payment on account for 2019/20.


Please note that you only make payments on account if your previous year’s tax bill was over £1,000 and only then if less than  80% of the liability was collected by being deducted at source from the income.

Updated on 27th July 2020

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