Admin

Question 1

Common penalty regime for errors:

Answer 1

A common penalty regime relates to situations where a taxpayer has made an error/inaccuracy in a tax return

Question 2

Careless inaccuracy:

Answer 2

The taxpayer has not taken reasonable care in completing the return

Question 3

Deliberate but not concealed inaccuracy:

Answer 3

The taxpayer has deliberately made an inaccurate return but has not positively done anything to conceal the inaccuracy

Question 4

Deliberate and concealed inaccuracy:

Answer 4

The taxpayer has deliberately made an inaccurate return and has positively done something to conceal the inaccuracy such as produced false invoices or bank statements.

Question 5

Potential Lost Revenue (PLR):

Answer 5

The amount of tax outstanding at the end of the tax year (income tax and CGT) or accounting period (corporation tax).

Question 6

Senior accounting officer (SAO):

Answer 6

The director who, in the company’s reasonable opinion, has overall responsibility for the company’s financial accounting.

Question 7

Voluntary payrolling:

Answer 7

Employers may voluntarily opt to process all benefits except accommodation and beneficial loans through the payroll

Question 8

Simple assessment:

Answer 8

HMRC can, if it has sufficient information, issue a simple assessment of an individual’s income tax or capital gains tax liability without the individual completing a tax return.

Question 9

Discovery assessments:

Answer 9

HMRC has the power via a discovery assessment to collect extra tax where it discovers a loss of tax even if the normal time period in which it could open a compliance check has passed.