Advance tax payments: the second-year shock
5 chapters·15 min·action plan·mastery check
Chapter 1 of 5
The idea
Year two of self-employment often brings one tax bill plus advance payments for the next year.
How it works
In some countries, once you owe tax over a threshold, you pay this year's bill and also advance payments towards next year, based on this year's profit. The first time, it can feel like paying 1.5 years of tax at once.
Predict first
Your first self-employed tax bill is $4,000. What might you pay that January (UK)?
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