Define: Payment On Account

UK Accounting Glossary

Definition: Payment On Account


Quick Summary of Payment On Account


Payment on Account is a tax payment made twice a year by self-employed people in order to spread the cost of the year’s tax. It is calculated by looking at your previous year’s tax bill, and is due in two instalments. The Payment on Account can be thought of as a way of paying off some of your tax bill in advance.



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Full Definition of Payment On Account


The Payment on Account can be thought of as a way of paying off some of your tax bill in advance.


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Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/payment-on-account/
Modern Language Association (MLA):
Payment On Account. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. February 25, 2020 https://payrollheaven.com/define/payment-on-account/.
Chicago Manual of Style (CMS):
Payment On Account. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/payment-on-account/ (accessed: February 25, 2020).
American Psychological Association (APA):
Payment On Account. PayrollHeaven.com. Retrieved February 25, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/payment-on-account/

Definition Sources


Definitions for Payment On Account are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 28th December 2018.