What is the last step when calculating payments on account?

The last step when calculating payments on account is to divide the total by 2. This step is crucial as it typically represents the action of determining the appropriate payment amount that needs to be made in relation to the taxpayer's income tax liability for the year. By dividing the total by 2, you ensure that the payments are spaced out evenly, helping taxpayers to manage their financial obligations effectively throughout the payment period.

In a broader context, payments on account are designed to apply pre-payments toward an anticipated tax liability, and this dividing action is a standard procedure to strike a balance between what has been earned and what is owed, thereby facilitating more manageable payment schedules.