The short version: SA303 is the form you use to reduce your Payments on Account if you know your income will be lower this year than last.
Why would you reduce them?
Payments on Account are based on last year’s tax bill. If your income has dropped, you’d be overpaying and waiting for a refund. Reducing them keeps your cash flow healthier.
What’s the risk?
If you reduce too much and end up owing more than you estimated, HMRC charges interest on the underpayment. Only reduce if you’re confident about your lower income.
How do you do it?
Fill in form SA303 and send it to HMRC, or do it through the online Self Assessment service. You can reduce at any time before the payment is due.
Think your income’s dropping and want to adjust your payments? Let us help you work out the right amount.
