How can I check whether my tax advances are realistic?
Compare forecast annual tax with advances and withholding credits, not just one month’s profit. Build a full-year estimate including deductible expenses, other income and personal relief. Check payments already made and those still expected. A material gap calls for a review. Turnover is not profit, and delayed customer payments do not necessarily mean income has fallen.
How do I reduce income-tax advances?
Submit a reasoned application supported by business figures and evidence. This example assumes advances are assessed as a percentage of turnover:
| Item | Amount |
|---|---|
| Turnover for the reporting period | NIS 40,000 |
| Advance at the required 5% | NIS 2,000 |
| If a 2% rate were approved | NIS 800 |
| Cash-flow difference | NIS 1,200 |
The 2% rate is hypothetical, not advice or approval. Reducing advances changes cash flow, not the final tax liability itself. Submitting an application does not suspend the existing payment obligation. An unjustified reduction can result in interest and linkage.
Do I need an accountant to reduce my advances?
An accountant is not required just to submit your own application. The Tax Authority allows taxpayers to apply using Form 2216A with an explanation and supporting documents. Professional help can be useful where several income sources, losses or an uncertain forecast make the calculation more complex.
How do I apply without an accountant?
- Open the official service page ↗ and read its current submission instructions.
- Download application form 2216A ↗, complete and sign it, and attach an income-and-expense report, forecast and supporting evidence.
- Submit to the tax assessing office handling your file as directed by the service, and keep proof of submission. This website does not collect the application.
- Wait for the response and verify that the new rate or amount has actually been recorded.
The baseline reduction/cancellation application deadline is 31 January of the following tax year, subject to law and official extensions. You need not wait until then to review your advances.
How do I increase advances as my business grows?
Update the annual tax forecast and contact the tax assessing office about increasing the demand, or ask your representative to handle it. The official representative service for adjusting advances ↗ is for representatives, not a self-service taxpayer application. Form 2216A above is for reduction or cancellation, not an increase. Do not inflate reported turnover simply to pay more.
Does this also change National Insurance advances?
Not automatically. Review these separately. The official National Insurance advance-update service ↗ permits an application for an income change of at least 10%, once per quarter, with evidence. Official Form 672 ↗. Consider possible effects on benefit rights as well as immediate cash flow before lowering the insured income base.
Official government sources
Keeping this article current
Sources reviewed on 28 October 2026. Review again in January 2027 or sooner if rules change; this is an editorial review target, not an automatic update.