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Self-employed income can fluctuate so there may be occasions that you need to reduce your payments on account towards your Self Assessment tax bill.

Fortunately, it is possible to request the payment amounts be reduced. This is done by submitting an SA303 form either online or by post.

How many payments can I make towards my Self Assessment bill?

As long as you pay the right amount by the correct deadline, you can make as many payments towards the bill as you like. If you’re required to make payments on account, you have two deadline payments to think about.

At least half of the amount payable is due by 31st July, and the balancing payment by 31st January.

Remember, with payments on account the amounts payable are worked out based on what HMRC think you need to pay as a result of the previous year’s return – not what you think you need to pay this year.

What happens if my payments on account are wrong?

If you ask to reduce your payments on account and this results in an underpayment, you’ll be required to pay the difference, plus interest earned. Overpayments are refunded by HMRC. Your payments on account for the next year will be based on the lower figure.

If you request a reduction and then your profits for the year increase, you should notify HMRC.

Following submission of your completed tax return you will receive a self-assessment statement telling you how much tax you owe by 31st January. If you believe that your next year’s income will be much less, you can complete form SA303 to apply to make lower payments on account.

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