Admin of tax

Question 1

Failure to notify penalty for:

• income tax
• corporation tax
• VAT

Answer 1

• tax unpaid at 31 Jan following tax y/e
• tax unpaid at 12m after end of accounting period
• VAT due since should have been registered

Question 2

What is the filing date for a VAT tax return?

Answer 2

1 month and 7 days after quarter end (same as payment date)

Question 3

When can HMRC make amendments to an income and corporation tax return?

Answer 3

9 months after the ACTUAL filing date

Question 4

When can the tax payer make amendments to an income and corporation tax return?

Answer 4

12 months from due submission date

Question 5

When can an overpayment relief claim be made on income tax?

Answer 5

Within 4 years of the end of the tax year

Question 6

When can an overpayment relief claim be made on corporation tax?

Answer 6

Within 4 years of the end of the accounting period

Question 7

How are the instalments of income tax structured?

Answer 7

50% of previous year's tax payable including class 4 NIC
Dates in tables

Question 8

What is the late payment interest on income and corporation tax?

Answer 8

Interest is from due date of payment to day before it is paid

Question 9

What is the late payment interest on VAT?

Answer 9

From date VAT should have been paid to date of payment

Question 10

Repayment of interest on overpaid tax

Answer 10

From later of actual date paid/due payment date to day before repayment - only if error is HMRCs for VAT

Question 11

How long should a business and an individual keep their income tax records?

Answer 11

Business - 5 years from 31 Jan following end of tax year

Personal - 1 year from 31 Jan following end of tax year

Question 12

How long should corporation tax records be retained?

Answer 12

6 years from the end of the accounting period

Question 13

How long should VAT records be held?

Answer 13

6 years

Question 14

When can enquiries into CT/IT tax returns made on time be made?

Answer 14

Within 12 months after actual submission date

Question 15

When can enquiries into CT/IT tax returns made late be made?

Answer 15

Can start by quarter day following 12 months after actual submission date (quarter days 31/1, 30/4, 31/7, 31/10)

Question 16

Can HMRC make estimations of tax due?

Answer 16

Yes if return not received by filing date. Estimation must be made within 3 years of filing date

Question 17

When can HMRC raise discovery assessments?

Answer 17

Can normally be raised up to 4 years from end of tax year/AP/VAT period.

If careless - 6 years
If deliberate - 20 years

Question 18

When should a tax payer notify HMRC of the need to complete a self-assessment return?

Answer 18

5 October following the tax year in which a new source of income is acquired

Question 19

When may a tax payer file a short tax return?

Answer 19

• If they are an EMPLOYEE
• a sole trader with turnover under £82,000pa
• if they’re a pensioner

Question 20

How must a sole trader in their first year pay their tax?

Answer 20

Using payments on account

Question 21

When must an appeal be made against a discovery assessment?

Answer 21

Within 30 days

Question 22

Does that tax payer have to apply for an internal review before making an appeal to the first tier tribunal?

Answer 22

No

Question 23

When is PAYE payable by a business?

Answer 23

14 days after the end of each tax month

Question 24

What is the initial penalty for filing a P11D form late?

Answer 24

£300 per return

Question 25

When should FPS be submitted to an EMPLOYEE if HMRC for tax year?

Answer 25

19 April

Question 26

When does HMRC have the right to give notice of its intention to conduct an enquiry?

Answer 26

12 months from the next quarter date

Quarter dates are 31 Jan, 30 Apr, 31 July and 31 Oct

Question 27

Can a taxpayer appeal against a request from HMRC to submit supporting documentation?

Answer 27

Yes