Self assessment taxpayers who owe a second payment on account for the 22/23 tax year have until midnight on the 31 July 2024 to make payment.
If you miss the second payment on account deadline HMRC will charge late payment penalties and interest on any tax due at a rate of 2.5% plus the Bank of England base rate.
You can check the value of the second payment on account that HMRC is expecting from you for the 2022/23 tax year online via your self assessment account.
HMRC bases your second payment on account on your previous tax years self assessment tax liability and is used by HMRC to help people keep on top of their self assessment tax bill.
You can pay your self assessment second payment on account by direct debit, BACS, CHAPS, or with your debit or credit card online.
2022/2023 self assessment second payment on account example
HMRC give an example on their website of a 22/23 tax year second payment on account as below:
“Your bill for the 2022 to 2023 tax year is £3,000. You made 2 payments of £900 each (£1,800 in total) on account towards this bill in 2023.
- The total tax to pay by midnight on 31 January 2024 is £2,700. This includes:
- your ‘balancing payment’ of £1,200 for the 2022 to 2023 tax year (£3,000 minus £1,800)
- the first payment on account of £1,500 (half your 2022 to 2023 tax bill) towards your 2023 to 2024 tax bill
- You then make a second payment on account of £1,500 on 31 July 2024.
If your tax bill for the 2023 to 2024 tax year is more than £3,000 (the total of your 2 payments on account), you’ll need to make a ‘balancing payment’ by 31 January 2025”.
HMRC time to pay arrangement
If you’re finding it difficult to pay your 2022/2023 tax year second payment on account on time you should consider setting up a time to pay arrangement with HMRC.
You can typically set a time to pay arrangement up online and if you qualify it let’s you pay what you owe to HMRC over an agreed period of time.
HMRC will still charge interest on any tax owed from a second payment on account.
Reduce your 22/23 second payment on account
If you’re aware that your tax liability will be less than the previous tax year, you can ask HMRC to lower your second payment on account.
This can be done either through your online self assessment account or via post. To reduce your advance payments online, log into your account.
- Choose the option to view your most recent self assessment return.
- Click on ‘Reduce payments on account’.
