ACCA Advanced Taxation (ATX) Practice Exam

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Prepare for the ACCA Advanced Taxation Exam. Use interactive flashcards and multiple-choice questions, complete with hints and comprehensive explanations. Ensure your success on exam day!

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What is the due date for the first payment on account for the tax year 2023/24?

31 January 2024
31 July 2024
31 March 2024
31 December 2023

The correct answer is: 31 January 2024

The correct due date for the first payment on account for the tax year 2023/24 is indeed 31 January 2024. In the UK tax system, self-assessment taxpayers are required to make advance payments towards their tax liabilities if their tax bill exceeds a certain threshold. These payments are referred to as "payments on account" and are typically calculated based on the previous year's tax liability. For the tax year 2023/24, the first payment on account is due by 31 January 2024. This aligns with the end of the tax year on 5 April 2024, allowing taxpayers to estimate their tax based on their previous year's figures. Following this, the second payment on account would be due by 31 July 2024. The other dates listed do not correspond with the standard due dates for the first payment on account as established by HM Revenue and Customs (HMRC) for self-assessment purposes. Thus, they are not relevant to the requirements for making these advance tax payments. Understanding the timing of these payments helps taxpayers manage their cash flow and avoid penalties for late payments.