Self-employed balancing payment question

motinter

I can't seem to find this answer out how the balancing payment is calculated exactly:

I'll use simple numbers for my example so that it's easier to calculate:

Current year:
Income tax: £7000
NI4: £2000
SLC: £2000
NI2: £200
Total tax: £11200
Payments for payment on account = (IT) £7000 + (NI4) £2000 = £9000 (2 payments of £4500)

Past year:
Income tax: £6000
NI4: £1000
SLC: £1000
NI2: £200
Total tax: £8400 
Payments for payment on account = (IT) £6000 + (NI4) £1000 = £7000 (2 payments of £3500)

Is the balancing payment:

Total tax for current year - payments on account previous year = £11200 - £7000 = £4200

And then the payment due on 31/01, the balancing payment (£4200) + the first payment on account (£4500) + SLC (£2000) + NI2 (£200) 

= £10,900

And then second POA due 31/07 = £4500

mebu60

The first payment on account for 24/25 due 31 January 2025 would normally be 50% of the balancing payment for 23/24. So the amount due 31:01:25 would be 1.5 x balancing payment. And on 31:07:25 another 50% of the 23/24 balancing payment. 

motinter

I'd read that the payment on account did not include SLC or NI2.

Dazed_and_C0nfused

motinter said:

I'd read that the payment on account did not include SLC or NI2.

Correct, although finding a guide that covers both of those isn't that easy!

https://www.gov.uk/understand-self-assessment-bill/payments-on-account

https://www.gov.uk/hmrc-internal-manuals/self-assessment-legal-framework/salf303