When might a payment on account (POA) not be required?

The correct answer highlights a specific circumstance when a payment on account (POA) might not be required. Generally, a POA is not mandated if the total tax liability is below a certain threshold, which is commonly set at £1,000. Therefore, if an individual's total tax liability results in a balance payable that is less than this threshold, they would not need to make a POA.

This situation arises to simplify tax obligations for individuals who may have a minimal tax liability, thereby preventing unnecessary financial strain or administrative burden. It encourages compliance while ensuring that only those who exceed this minimal level of tax liability engage in the payment on account process.

Understanding this threshold is crucial for individuals as it helps them determine their payment responsibilities and avoid any penalties associated with non-compliance.