As the self-assessment deadline looms, it is not only necessary to consider what might be owing for 2017/18, but also whether any payments on account towards the 2017/18 liability need to be made.
It is sometimes mistakenly believed that you do not need to tell HMRC about payments that you receive in cash. This is not the case and regardless of whether you work for yourself or for someone else, earnings that you receive in cash are taxable in the same way as income paid by cheque, credit card or by bank transfer.
Under the self-assessment system, an individual is required to make payments on account. These are essentially advance payments towards the individual’s tax bill.