Don’t Overpay Your 31 July Tax Bill - Check Before You Pay

If you’re self-employed or complete a Self Assessment return, you may be due to make your second “payment on account” by 31 July. But before paying the full amount, it’s worth checking if your income has dropped since last year.

Payments on account are advance payments toward your current year’s tax bill, based on your previous year's income. If your profits are down for any reason, you could be overpaying.

HMRC allows you to reduce your payment if your current year’s income will be lower. You can apply online or by submitting form SA303 to HMRC.

Be careful not to underestimate - if you underpay, HMRC may charge interest or penalties. But if the reduction is justified, this can free up cash you may need for your business or personal expenses.

Need help working it out? Get in touch! We’ll help you estimate your liability and avoid overpaying.

Always keep a record of any reduction request in case HMRC asks later.

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Don’t Overpay Your 31 July Tax Bill - Check Before You Pay

If you’re self-employed or complete a Self Assessment return, you may be due to make your second “payment on account” by 31 July. But before paying the full amount, it’s worth checking if your income has dropped since last year.

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