Brooksieking
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Reducing payments on account
I am no longer operating my business so naturally recent profits in this tax year have dipped about 90 percent since the tax return I am about to submit for 23/24. However HMRC wants to take a payment on account for 24/25 which is going to be about 10x more than what will be actually owed in 24/25. I note you can apply to reduce this payment on account but in the services screen it says "this allows you to reduce the payments on account you have been asked to make for the tax year ending 5 Apr 2024". however the payment on account I want to reduce is for the tax year ending 2025 (ie the one due 31 Jan 2025 and July 2025). Obviously I've already paid the payments on account for the tax year ending April 24 so why would I want to pay those again? Can you clarify, is the wording on the HMRC service screen a mistake? is it meant to be tax year ending April 2025? Or am I getting confused somewhere? Essentially I just want to apply to reduce the amounts I'm being asked to pay on account for the next tax year (ie the payments due Jan and July 2025). Thanks.