Reminder for Self-Employed: First Payment on Account for the Tax Year!
Posted on 15 Jan 2025
We want to remind you that an important deadline in the tax calendar is approaching for all self-employed individuals. The 31st of January marks the due date for the first payment on account for the current tax year. Ensuring you meet this deadline is essential to keeping your finances on track and avoiding unnecessary penalties.
What is a Payment on Account?
Payments on account are advance payments towards your total tax bill for the current year. Instead of paying a large lump sum at the end of the tax year, these payments allow you to spread the cost into two installments, making it easier to manage your cash flow.
Why Are These Payments Important?
Making payments on account on time not only avoids penalties but also helps you maintain solid financial control. Missing payments can result in:
- An initial 10% surcharge immediately after the due date.
- An additional 20% surcharge if the payment remains outstanding 90 days after the first surcharge.
In addition to surcharges, interest on late payments can accumulate quickly, further increasing your debt to the tax authority.
Key Dates to Remember
- 31st January: First payment on account due.
- 30th June: Second payment on account due.
- 31st January of the following year: Final tax settlement and first payment on account for the next fiscal year.
These dates are fixed and should be marked on your calendar to avoid any oversight.
Making your payments on time not only avoids fines but also gives you peace of mind, allowing you to focus on growing your business. Proper financial planning helps you manage your resources more effectively, avoid unpleasant surprises, and take advantage of any tax optimization opportunities.
What to Do if You Need Help
Not all self-employed individuals are clear about how much they need to pay or how to handle their tax responsibilities. That’s where TAG Consultancy comes in.
Our team of experts can:
- Help you calculate the exact amount you need to pay.
- Review whether you can safely reduce your payments on account.
- Assist you in setting up systems for more efficient tax management in the future.
Why Choose TAG
At TAG, we understand the unique challenges faced by self-employed individuals. From complex tax calculations to the pressure of meeting deadlines, our goal is to simplify the process for you. We offer a free consultation to all new clients and are available through multiple channels to ensure you always have the support you need.
Contact Us
- Phone: +350 22501252
- Whatsapp: +350 54001546
- Online contact form
- Regulated by the Gibraltar Financial Services Commission
