What Is the Payment on Account System?

The payment on account system is basically the way in which HMRC collect taxation for individuals who have less than 80% of their income collected at source. If you're self-employed like a GP Loken but it could be anyone who's self-employed you'll earn a taxable profit. Tax will not be collected at source on that taxable profit so you're going to fall into this payment on account scheme. The first tax year nothing much kind of changes whether you go up to the 5th of April and then you pay your tax on the 31st of January at the following year okay. Now at this point HMRC will say okay we now know how much tax you owe for that tax