Payment on account
A payment on account is an advance instalment towards next year's tax bill. HMRC asks for them once your bill passes £1,000, in two halves, each equal to 50% of the year just filed.
Correct for the 2026/27 tax year. Last checked 12/09/2026.
This is the single biggest shock in a first tax bill, because the first bill includes the year you have filed plus half of the next one.
A worked example
| Due | What | Amount |
|---|---|---|
| 31 January | Balancing payment for the year filed | £2,400.00 |
| 31 January | First payment on account for the next year | £1,200.00 |
| 31 July | Second payment on account | £1,200.00 |
| Total across the year | £4,800.00 |
A £2,400.00 bill is a £3,600.00 January. That is the whole problem, and it is why the number to save against is not last year's tax.
Where to read more
Payments on account, explained with a first bill.
Sources
Related
Payments on account, explained with a first bill
A payment on account is an advance instalment towards next year's tax. HMRC asks for them once a bill passes £1,000, in two halves each worth 50% of the year just filed. It is why a first bill can be one and a half years of tax at once.
HMRC & taxUpdated 27/08/2026
What are payments on account?
Advance payments toward next year's tax bill, due if this year's bill is £1,000 or more - which is why a first January bill can be 150% of what you expected.
HMRC & taxUpdated 19/08/2026
Balancing payment
The balancing payment is the difference between the tax you actually owe for a year and what you already paid towards it in payments on account. It is due on 31 January with the return.
HMRC & taxUpdated 27/08/2026
Riding for Deliveroo: the full guide
How Deliveroo works for a rider: what you need to join, how each fee is worked out, the pay floor agreed with the GMB union, when the money arrives, the insurance Deliveroo gives you for free, and the parts that are left to you.
Getting startedUpdated 29/09/2026
Delivering for Uber Eats: the full guide
How Uber Eats works for a courier: signing up, how each delivery is paid, Quests and batched orders, the weekly pay cycle and the two ways to cash out early, the free Allianz cover, Uber Eats Pro, and the tax side.
Getting startedUpdated 29/09/2026
Delivering for Just Eat: the full guide
Just Eat works differently from the other food apps. You set your availability each week and are scheduled into delivery runs, each order pays Transit Pay, and your acceptance rate decides how quickly offers reach you. Here is how all of it fits together.
Getting startedUpdated 29/09/2026