How payments on account work in FreeAgent

Here we explain how payments on account work in FreeAgent.

Payments on account are payments that some individuals are required to make towards their next year’s income tax and class 4 National Insurance bills. Here's how payments on account work in FreeAgent.

Payments on account in your FreeAgent tax return

When you fill in your tax return in FreeAgent, you’ll see that it works out your payments on account for the next tax year and displays this figure in box 11 on the Tax Adjustments page.

self assessment tax return - payments on accounts - boxes 10 and 11

So if you’re preparing your 2015/16 tax return (the return that covers the tax year that runs to 5th April 2016), FreeAgent will show you how much you can expect to pay on account for 2016/17.

Reducing your payments on account for next year’s FreeAgent tax return

If you are advised by your accountant that you can reduce your payments on account for the next tax year, you can change the figure on the Tax Adjustments page of your FreeAgent tax return.

If you’re preparing your 2015/16 tax return, for example, and your accountant advises that you can reduce your payments on account for 2016/17, you can set box 10 to ‘yes’ and change the figure in box 11 on the Tax Adjustments page.

tax adjustments page - boxes 10 and 11 Bear in mind that if you reduce this figure too far, HMRC will charge you interest on a late payment of tax, so always seek your accountant’s advice first!

Finding out what you owe and when

In FreeAgent, you can see how much tax and class 4 National Insurance you owe on either the Overview screen Tax Timeline or at the bottom of the ‘Your Tax Breakdown’ page. Make sure you’re looking at the correct year, as the dates can sometimes be confusing!

your tax breakdown page - payments to HMRC

Did you find this article useful?

We're glad to hear that!

...and thanks for taking the time to feed back, it's appreciated.

We’re sorry to hear that. Would you like to...

Contact our support team

Our friendly, experienced support team are on hand to help - just email us at support@freeagent.com

Send us some feedback...

We'd love to hear your feedback about this article - please email details to support@freeagent.com