Define: Payment On Account

UK Accounting Glossary

Definition: Payment On Account


Quick Summary


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.



What is the dictionary definition of Payment On Account?

Dictionary Definition



Full Definition


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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