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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When is the balancing payment due for the tax year 2023/24?

31 January 2024
31 July 2024
1 April 2025
31 March 2025

The correct answer is: 31 January 2024

The due date for the balancing payment for the tax year 2023/24 is indeed 31 January 2024. This date is significant as it marks the end of the tax return filing period for self-assessment taxpayers in the UK. For individuals and businesses that are required to file their self-assessment tax returns, the balancing payment represents the additional tax owed after any payments on account have been made. In the self-assessment system, taxpayers make payments on account based on their previous year's tax liability, and any remaining balance is settled by 31 January following the end of the tax year. Therefore, for the tax year running from 6 April 2023 to 5 April 2024, the balancing payments become due on 31 January 2024. This structure is designed to ensure that payments are made promptly and reduces the risk of taxpayers accruing large debts over time. Understanding this timeline is crucial for effective tax planning and compliance.