Double checking understanding of payments on account
Re-posting as my title wasn’t specific enough.
Last year I saved £18k into Premium Bonds for my tax bill, but have somehow managed to cash flow actually paying it, which means this money is still sitting in PBs. It was my first year of paying on account; my bill was roughly £11k plus the extra, so I paid approx £5k in April, another £5k in July, have about £7k to pay in January 27, and then another £5k due after that. I should be able to continue cash flowing these payments so I don’t think I’ll need what’s in the PBs.
I’d like to take £4k out and put it in my LISA (and maybe the rest out and put it in my S&S ISA too) but I’m nervous that I might be misunderstanding how payments on account work and I’ll suddenly find I owe more than I thought and need a load of cash to give HMRC! When I do my next tax return (I always do it in April) my payments on account will be set against what I owe for 26-27, and I’ll start making new payments on account for the next year, right?