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Posted Fri, 22 Dec 2023 15:02:17 GMT by Matthew231
Hi - how come we now have to pay the previous years tax plus an advance of 6 months for the new year? We didn't have to do this before and it really dents the cashflow.
Posted Fri, 05 Jan 2024 14:20:03 GMT by HMRC Admin 5 Response
Hi

Everyone who owes over £1000 in tax after filing a return is asked to make these 2 advance payments, called Payments on Account.
We do this to ensure that your tax bill at the end of the year isn't unmanageable for you if the amount you owe is substantially higher than predicted.
As we ask for your first PoA payment on the 31st of January, you are effectively paying your first 6 months of predicted tax after 9 months - PAYE customers would automatically have paid this amount after 6 months.

Thank you

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