Q What is a Balancing Payment and when is it payable ?
A: Income tax(which has not been deducted at source) and Class4 NIC are paid as follows:
First payment on account by 31 January in the Tax Year.
Second payment on account by 31 July following the end of the Tax Year.
Balancing payment by 31 January following the end of tax year.
Payments on account is half the income tax paid and Class 4 NICs paid under self -assessment for the previous Tax Year.
The Balancing Payments paid on 31 January following the Tax Year. The balancing payment comprises any unpaid income tax and Class 4 NICs together with capital gains tax payable for the year, and any Class 2 NIC Liability for the year