Payments on account are advance payments towards a client's next tax year liability, due on 31 January and 31 July. By default, each payment is set at 50% of the current year's tax liability. Where a client expects their income in the following year to be lower, they can apply to reduce their payments on account. This is done via the SA110 in BrightTax.

• Run Check and Calculate first — the SA110 must be populated before you can reduce payments on account.
• Ensure you have a genuine reason for the reduction — HMRC may charge interest if payments are reduced and the actual liability turns out to be higher.

1. Open the ITR and go to the SA110 tab.
2. Switch to Edit mode using the bottom-left toggle.
3. Locate Box 10 — Application to reduce payments on account.
4. Tick Box 10.
5. Enter the reduced amount in Box 11 — the amount each payment on account should be reduced to.
6. Click Save.
7. Re-run Check and Calculate to update the balancing payment calculation.

Reducing payments on account increases the balancing payment due on 31 January following the tax year end. When you re-run Check and Calculate after entering the reduction, the SA110 will update to show the revised balancing payment.

Q: Can I reduce payments on account to zero?

A: Yes — enter zero in Box 11. However, only do this where there is a genuine expectation of no tax liability in the following year. HMRC charges interest on late or underpaid payments on account.

Q: Where are the payment on account dates shown?

A: Payment on account due dates are shown on the SA110 page after Check and Calculate has been run. The first payment is due 31 January and the second 31 July following the tax year end.

Q: My client has already made payments on account — does reducing them trigger a repayment?

A: Reducing payments on account via the SA110 is an application for future payments, not a refund of amounts already paid. For repayments of amounts already paid, the client needs to contact HMRC directly.