Tax liability £1000
Following January pay £1000 + £500 = £1500
Following July pay £500
Then pay £500 every January and July ongoing until taxable profits/tax liability goes up or down.
First year is worst though as you pay 1.5 x tax in one go, but ongoing does even out.
Sorry if patronising, but your reply read like it’s a one year thing whereas you’ll have payments on account ongoing unless your tax liability goes down.
You always have to pay on account, but you only pay the balance for the end of whole year if more than what is already on account.
Spot on. As an example:
I.e tax liability £1,500, payments on account made 2 x £500, you’d have £500 to pay the following January, and payments on account that January and July of £750.
You can set up a payment scheme with HMRC to pay ad hoc if that helps remove the temptation to take from a seperate account.