Practice 1 - task 6a

katelowes
katelowes Registered Posts: 12
Hi, could anyone explain the balancing payment? I understand the 20/21 payment

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  • Pian32
    Pian32 MAAT Posts: 464
    31st January 2021 - Balancing Payment for the 19/20 year - £1004
    31st January 2021 - Payment on account for the 20/21 Year - £2930
    31st July 2021 - Payment on account for the 20/21 year - £2930

    So the balancing payment assuming all payments on account have been made is effectively

    Tax Calculated for year X - Tax calculated for Year (X-1)
    5860-4856 = 1004

    Payments on account are simply half of the tax for the year just gone.
    2021 year payment on account so 19/20 tax divided by 2
    5860/2 = 2930
    AAT Level 4, MAAT
    ACCA in progress
    F4- Passed Aug 2020
    F5- Passed Dec 2020
    F6- Passed Sep 2020
    F7- Passed June 2021
    F8 - Passed Sep 2021
    F9 - Passed June 2021

    SBL
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    ATX - Planned Dec 21
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  • katelowes
    katelowes Registered Posts: 12
    Thank you! Makes sense
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