What are installment payments?

Instalments are periodic income tax payments that have to be paid on certain dates. These payments cover the tax that you would normally have to pay in a lump sum on 30 April of the following year.Instalments are not paid in advance; they are paid during the calendar year in which you are earning the taxable income.

If you earn income that has no tax withheld, or does not have enough tax withheld for more than one year, you may have to pay tax by instalments. This can happen if you earn rental, investment, or self-employment income, certain pension payments, or income from more than one job.