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In this video, Adam discusses how to reduce self-assessment payments on account. Payments on account are typically required unless your last tax bill was less than a thousand pounds or you paid more than 80% of the previous year's tax owed. If your main income is from employment with taxes collected at source, you may not need to make payments on account. However, if you have income without tax deductions, payments on account may be necessary. This can be a shock in the first year of self-assessment, but usually smooths out in subsequent years. HMRC may ask taxpayers to pay 100% of the tax liability for the year initially.
