Payments on account

Hi, for the tax year 2021-2022 I worked mainly through an umbrella company and a few months as a sole trader so I now owe approx only £800 in tax as the rest was PAYE. I understand this means that I do not need to make any payments on account on this occasion. My query is whether I should inform HMRC that as I am now working a sole trader, I will owe a lot more tax for 2022-2023. Should I offer to make payments on account knowing that I will have a higher tax bill next year or can I pay my tax like a first time sole trader?Understandably this will be a larger amount of tax which I can afford to pay. Thank you.

Hi RVN1,

If we did not create payments on accountm, we would not be able to create them now.

You can make payments into your account in advance if you wish. 

Please see guidance 

These paymentds are credited to your Self Assessment account. 

If you have not already registered as a sole trader you should do this to ensure  your Class 2 National Insurance for Self-Employment is corrected calculated.

Understand your Self Assessment tax bill

Pay your Self Assessment tax bill

Thank you.