Chapter 8 - 1.4 - Payments on Account Flashcards
1
Q
What do the self-employed need to make payments on account (POA) for?
A
Income tax and class 4 NICs
2
Q
For which taxes are POAs never required?
A
Capital gains tax or class 2 NICs
3
Q
When is the first payment on account due?
A
31st January in the tax year
4
Q
When is the second payment on account due?
A
31 July following the end of the tax year
5
Q
How is each POA calculated?
A
It is calculated based on 50% of the previous year’s tax payable by self-assessment
6
Q
When are no POAs required?
A
If the amount of tax paid in the previous tax year under self-assessment was:
- £1,000
- <20% of total income tax and class 4 liability
