2: Intro to tax

Question 1

What is the neutrality principle

Answer 1

Tax should be neutral aso as not to distort choice

Question 2

Equity principle

Answer 2

Tax should be equitable

Question 3

Efficiency principle

Answer 3

Cost of collecting tax should be low in relation to the tax raised

Question 4

To which taxes are partners jointly liable

Answer 4

-Income tax of employees deducted under PAYE
- National insurance contributions as an employer
- VAT

Question 5

Explain MTDfB

Answer 5

Making tax digital for businesses.
- Initally only applies to VAT but in 2026 will also apply to income tax for trading or property income over 50k.

Question 6

When does a budget speech usually happena and when do those rules come into force

Answer 6

Autumn budget, changes made at start of next tax year in april.

Question 7

Give some HMRC publications

Answer 7

• Manuals
• Statements of practice
  -Press release
• Extra-statuatory concessions
• Leaflets