Does the balancing payment include the first payment on account for next year?

No. Your balancing payment is only for the tax year just ended. The first payment on account for the next tax year is a separate amount, also due on 31 January, but it's not part of the balancing payment.

What if I can't pay my balancing payment on time?

You should pay by 31 January to avoid interest and penalties. If you're struggling, you can set up a payment plan with HMRC, but this is separate from the balancing payment itself.

How do I know if I have a balancing payment?

After you file your Self Assessment return, HMRC will send you a statement showing your total bill, payments on account already made, and the balancing payment due or refund owed.

Can my balancing payment be a refund?

Yes. If your payments on account were more than your final tax bill, the difference is refunded to you. This can happen if your income dropped or you had more tax deducted at source.

Balancing payment — definition

A balancing payment is the amount you owe HMRC on 31 January once your final Self Assessment bill is known and any payments on account you've already made are deducted. If you've overpaid, the balancing payment becomes a refund instead.

Reviewed 18 August 2026 · Software guidance, not tax advice.

In one paragraph

Your balancing payment is the final settlement for a tax year. After you submit your Self Assessment return, HMRC calculates your total tax bill. From that, they deduct any payments on account you've already made. The remaining amount is your balancing payment, due by 31 January. If your payments on account were more than the bill, the balancing payment is a refund to you.

Worked example

Say your tax bill for the year is £3,000. You made two payments on account of £1,200 each, totalling £2,400. Your balancing payment is £600, due 31 January. If instead your bill was £2,000, you'd have overpaid by £400, so you'd receive a refund.

Related terms

[Payments on account explained] — how these advance payments work and when you need to make them.

Frequently asked questions

Does the balancing payment include the first payment on account for next year?: No. Your balancing payment is only for the tax year just ended. The first payment on account for the next tax year is a separate amount, also due on 31 January, but it's not part of the balancing payment.
What if I can't pay my balancing payment on time?: You should pay by 31 January to avoid interest and penalties. If you're struggling, you can set up a payment plan with HMRC, but this is separate from the balancing payment itself.
How do I know if I have a balancing payment?: After you file your Self Assessment return, HMRC will send you a statement showing your total bill, payments on account already made, and the balancing payment due or refund owed.
Can my balancing payment be a refund?: Yes. If your payments on account were more than your final tax bill, the difference is refunded to you. This can happen if your income dropped or you had more tax deducted at source.