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The January payment is made on the assumption that you will earn the same amount as you did the previous year
And you can tell them you're not going to make as much and they will reduce your payments on account.
It's only a payment in advance if your work is highly seasonal and you do less than half your annual profits between April and January.
Of course, all bets are off if your basis period isn't April to April 🙂
gbj_tester
Of course it's a payment in advance, you are making it in advance of your tax calculation being made. The January payment is made on the assumption that you will earn the same amount as you did the previous year not actual earnings since April. You can also file and pay your tax on the 6th of April if you wanted to.