What is a Balancing Payment for Self-Assessment?
For taxpayers in the UK, especially those who are self-employed or have income outside traditional PAYE (Pay As You Earn) systems, the process of filing a self-assessment tax return can be intricate. Among the various terms encountered in the process, “balancing payments” play a significant role. This article delves into the meaning of balancing payments for self-assessment, how they are calculated, why they matter, and the steps UK taxpayers must take to manage them effectively.