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  • Payment on Account reconciliation

    The 2020/2021 tax year was the first time that I'd made sufficient taxable income to take me above the imposed threshold to be liable to make payments on account. I made my first 2 payments on account - one in January 2022, followed by the mid term 2nd payment in July 2022. Now when I'm completing and submitting my 2021/2022 self assessment, the calculation of my tax liability makes no reference to or deduction of these "payments on account". I've looked at similar posts on this issue on this forum, so I think I know the answer, but I would like to formally post my own submission. My question is - will the payment you are holding be automatically deducted or will I need to manually reconcile this myself and deduct the "credit" from the tax I owe before I make payment ? Also - do you pay interest on the not insignificant amount that you've been holding for the last 6 to 12 months ?