I am an accountant with a client who has combined salary or dividend income of £75,000 for the tax year 2024/25 (i.e., £12,500 PAYE, the rest is dividend). In 2024/25, when he was with a previous accountant, his car was owned by the company, which attracted a £15,000 benefit-in-kind. During August 2025, the company sold the car and replaced it with an electric zero-emissions one. On the basis that his expected benefit-in-kind for 2025/26 is expected to be significantly lower, and his dividends are going to be the same, is this a reasonable basis to reduce his payments on account? 

Arthur replies: 

You definitely have a good reason to submit a form SA303 to reduce your payments on account. You should do your best to 'crunch the numbers' so that you have a presentable computation to show why you are justified in reducing the payments on account. Also take note of the time limits for submitting the SA303 for the tax year 2025/26.