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What is Payments on account?
Payments on account are advance payments towards your next tax bill. Each one is usually half of the previous year's Self Assessment bill, due on 31 January and 31 July.
Why it matters to landlords
They catch many new landlords out: in the first year with a tax bill you may pay that bill plus the first payment on account for the following year in the same January.
You do not make them if last year's bill was under £1,000, or if more than 80% of your tax was collected at source. You can ask HMRC to reduce them if you expect lower profit.
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