Is UK Income Tax Paid In Two Instalments Over The Year?
Actually once your business is established there may be three payments a year. Payment on account (based on last year’s profits) on 31st January. Second payment (may be on account, or actual amount due if you have sent in your Tax Return, and liability reduced) on 31st July, and if profits have increased, any balance of tax due on 31st January, the same date as first payment on account for following year. HMRC sent out bills, but next invoice due will only show payment due on that date. Your January 31st bill will not show amount due in July. Total liability for the year is shown on statement you receive after your Tax Return is processed. It may be that your Mother cleared her liability with the first two payments. This may happen to you if profits are down, then you could be due a refund. I am not sure if the invoice to which you are referring is your balancing payment for 2008/2009, first payment on account for 2009/2010, or both.
