Administration Flashcards
Notification of new income if no return issued: Income tax
5 October following end of tax year in which new income arose
Notification of new income if no return issued: Corporation tax
12 months after END of AP
How do you calculate: Failure to notify penalty: Income tax
Tax unpaid at 31 January AFTER tax YE
Amendments to return by HMRC:
Income tax & Corporation tax
9 months after ACTUAL filing date
Amendments to return by tax payer:
Income tax
12 months from SUBMISSION due date
E.g. 31 Jan 24 for tax year 22/23
Amendments to return by tax payer:
Corporation tax
12 months from SUBMISSION due date
Overpayment relief claim: Income tax
Within 4 years from END of tax year
Overpayment relief claim: Corporation tax
Within 4 years of End of AP
Payments of tax: Income tax (3)
- POA = 1/2 x (Previous year’s tax payable + C4 NIC)
- 1st POA: 31 Jan in tax year
- 2nd POA: 31 July after tax year
- Balancing payment + CGT + C2 NIC : 31 Jan after tax year
How do you calculate POA for 23/34?
Total income tax liability for 22/23
Less: deducted at source
Add: Class 4 NIC
POA = Total / 2 for 24
How do you calculate balancing payment for 23/24?
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
Late payment interest: Income tax
Due date to day before tax is paid
Late payment interest: Corporation tax
Day AFTER due date to day tax is paid
Tax return filing dates: Income tax
Paper: 31 Oct after END of tax year
Online: 31 Jan after END of tax year
Tax return filing dates: Corporation tax
12 months after END of AP
Time limits for record keeping: Income tax
Business owner: 5 years from 31 Jan AFTER end of tax year
Personal: 1 year from 31 Jan AFTER end of tax year
Time limits for record keeping: Corporation tax (& VAT)
6 years from END of AP
Enquiries into Income tax and Corporation tax if the return is filed on Time
From 12 months of ACTUAL SUBMISSION date
Enquiries into Income tax and Corporation tax if the return is filed late
Start from 12 months after actual submission date, on quarter day (last day of quarter)
Determinations: Income and corporation tax
Must be made within 3 years of filing due date
Discovery assessments (3)
Can be raised by HMRC up to 4 years from end of tax year / AP / VAT period
Careless - 6 years
Deliberate - 20 years
How does the gift aid scheme operate? (3)
- Donor gives to charity making a gift aid declaration
- amount paid to charity is made net of 20% tax
- Individual paid 80% of donation, charity can claim 20% from HMRC
