Administration

Question 1

Notification of new income if no return issued: Income tax

Answer 1

5 October following end of tax year in which new income arose

Question 2

Notification of new income if no return issued: Corporation tax

Answer 2

12 months after END of AP

Question 3

How do you calculate: Failure to notify penalty: Income tax

Answer 3

Tax unpaid at 31 January AFTER tax YE

Question 4

Amendments to return by HMRC:
Income tax & Corporation tax

Answer 4

9 months after ACTUAL filing date

Question 5

Amendments to return by tax payer:
Income tax

Answer 5

12 months from SUBMISSION due date

E.g. 31 Jan 24 for tax year 22/23

Question 6

Amendments to return by tax payer:
Corporation tax

Answer 6

12 months from SUBMISSION due date

Question 7

Overpayment relief claim: Income tax

Answer 7

Within 4 years from END of tax year

Question 8

Overpayment relief claim: Corporation tax

Answer 8

Within 4 years of End of AP

Question 9

Payments of tax: Income tax (3)

Answer 9

1. POA = 1/2 x (Previous year’s tax payable + C4 NIC)
2. 1st POA: 31 Jan in tax year
3. 2nd POA: 31 July after tax year
4. Balancing payment + CGT + C2 NIC : 31 Jan after tax year

Question 10

How do you calculate POA for 23/34?

Answer 10

Total income tax liability for 22/23
Less: deducted at source
Add: Class 4 NIC
POA = Total / 2 for 24

Question 11

How do you calculate balancing payment for 23/24?

Answer 11

Income tax liability for 23/24
Less: tax deducted at source
= Income tax payable for 23/24
Add: Class 2 NIC
Add: Class 4 NIC
Add: CGT
= Total tax liability

Balancing payment:
Total tax liability
Less: POA based on previous tax payable

Question 12

Late payment interest: Income tax

Answer 12

Due date to day before tax is paid

Question 13

Late payment interest: Corporation tax

Answer 13

Day AFTER due date to day tax is paid

Question 14

Tax return filing dates: Income tax

Answer 14

Paper: 31 Oct after END of tax year
Online: 31 Jan after END of tax year

Question 15

Tax return filing dates: Corporation tax

Answer 15

12 months after END of AP

Question 16

Time limits for record keeping: Income tax

Answer 16

Business owner: 5 years from 31 Jan AFTER end of tax year
Personal: 1 year from 31 Jan AFTER end of tax year

Question 16

Time limits for record keeping: Corporation tax (& VAT)

Answer 16

6 years from END of AP

Question 16

Enquiries into Income tax and Corporation tax if the return is filed on Time

Answer 16

From 12 months of ACTUAL SUBMISSION date

Question 17

Enquiries into Income tax and Corporation tax if the return is filed late

Answer 17

Start from 12 months after actual submission date, on quarter day (last day of quarter)

Question 18

Determinations: Income and corporation tax

Answer 18

Must be made within 3 years of filing due date

Question 19

Discovery assessments (3)

Answer 19

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

Careless - 6 years

Deliberate - 20 years

Question 20

How does the gift aid scheme operate? (3)

Answer 20

1. Donor gives to charity making a gift aid declaration
2. amount paid to charity is made net of 20% tax
3. Individual paid 80% of donation, charity can claim 20% from HMRC