Balancing payment for self assessment

RCat

I am in my third year of being self employed. I earned less for 23-24 so have just had a rebate which has been deducted from my payment due in July. However, I have noticed HMRC have added a balancing payment to next January’s installment. I understood a balancing payment was due if you had earned more than expected and needed to pay more than your advance payments. If this is the case I cannot understand why I now have to pay a balancing payment and advice would be appreciated thank you. I didn’t use an accountant as I thought my return was quite straight forward. 

Dazed_and_C0nfused

RCat said:

I am in my third year of being self employed. I earned less for 23-24 so have just had a rebate which has been deducted from my payment due in July. However, I have noticed HMRC have added a balancing payment to next January’s installment. I understood a balancing payment was due if you had earned more than expected and needed to pay more than your advance payments. If this is the case I cannot understand why I now have to pay a balancing payment and advice would be appreciated thank you. I didn’t use an accountant as I thought my return was quite straight forward. 

Is the Balancing Payment for Class 2 National Insurance?

[Deleted User]

Are you sure it’s not a payment on account for 2024/25? Perhaps some figures would be of assistance?

sheramber

Are there two entries for January

balancing payment 
and
1st payment on account?

OR
only one for the 1st payment on account.

You do realise you make two payments on account- one in January and one in July. Each payment is half of the previous year!’s years amount due.