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  • RE: Balancing payment

    Thank you for your reply. So, just to clarify, if I have no payments on account for 24/25 but my tax bill for that year is say £5,000 would that mean that in January 2026 I would have a balancing payment of £5,000 and then two payments on account of £2,500 each. Do the payments on account I make in 23/24 then go towards my tax bill for 25/26. I would like to complete my own self assessment going forward and am just trying to clarify this point to hopefully avoid any mistakes I might make.
  • Balancing payment

    I’m a sole trader and will be making a purchase of equipment during this financial year 2023/24. The cost of the equipment will take my profits below the tax threshold, meaning that I won’t have any tax liability for 2023/24. In tax year 2024/25 my profit should return to normal meaning that I would have tax liability. My question is, how would my tax calculation be done. Would I just have 2 payments on account to make or would there be any kind of balancing payment due. For example: 2024/25 tax due £4,000 = 2 payments on account of £2,000. Would that be all that needed to be paid.