HMRC require a payment on account towards your tax bill in January and July of each year.  But what if your earnings have taken a dip or gone into full time employment? Well, you can apply to HMRC to reduce your payments on account.

You can either apply as part of submitting your personal tax return, which is due by 31 January each year.  Alternatively you need to submit a form called an SA303 which can be done by post or online here.  You will need your Government Gateway login details as well as your UTR number (Unique Tax Payers Reference).

Note: you can face penalties and interest if you opt to reduce your payments on account too much, so be careful when applying.

Find out more about Payments on Account here.