Taxpayers that make payments on the account should be aware that the second payment on account for 2017-18 is due on or before31 July 2018. The amount due for payment is usually the same as the first payment on account made on 31 January 2018 in relation to the 2017-18 tax year. These payments are based on 50% of your previous year’s net Income Tax liability. However, if your estimated liability for 2017-18 is lower than 2016-17 you can ask HMRC to reduce your payment on account. This is done using theSA303 form Self Assessment: claim to reduce payments on account. The form can be submitted to HMRC online or by post. If your taxable profits have increased there is no requirement to notify HMRC and the deadline to make any balancing payment for 2017-18 will be 31 January 2019. No payments on account are required where a taxpayer’s net Income Tax liability for the previous tax year is less than £1,000 or if more than 80% of that year’s tax liability was collected at source. In addition, the third (or only) payment of tax will be due on 31 January following the end of the tax year e.g. for the 2017-18 tax year a final payment is due on 31 January 2019. This is the same date for any CGT due for the same tax year and also the date for the first payment on account for 2018-19. Planning note Taxpayers should ensure that they plan for these tax payments, and where possible, reduce the amount of any payments on account if profits or income has been falling. We can assist with the filing of applications to reduce payments on account. There are penalties for late payment of tax due.