Where you are required to make Payments on Account but you expect your
liability for the year to decrease for one of the reasons stated in Step 2,
you can claim to reduce your payments on account.
Please enter here the reduced amount you have calculated you need to pay for each Payment on Account.
Final liability for 2005/06 was £1500.00
Payments on Account for 2006/07:
1st payment of £750.00 due on 31/1/07 and 2nd payment of £750.00 due on 31/7/07.
Expected liability for 2006/07 reduced to £800.00
Revised Payments on Account for 2006/07 £400.00 by 31/1/07 and £400.00 by 31/7/07.
Amount to enter in Step 1 is £400.00