Administration of tax

Question 1

What is the Business Payment support service for?

How does it work?

Does interest still apply?

Answer 1

Programme by HMRC to help taxpayers who are unable to meet tax payments.

Can spread payments over longer periods, without extra penalties

Yes

Question 2

True or false;

HMRC offers a Business Payment Support Service to taxpayers to help them meet payments if they are struggling. This may allow taxpayers to spread payments over longer time periods without incurring additional penalties and interest.

HMRC may only request information from third parties if they have First-Tier tax tribunal approval.

Answer 2

False

The Business Payment Support Service may allow taxpayers to spread payments over longer time periods without incurring additional penalties, however interest will still apply.

False.

HMRC may also request information from third parties with taxpayer approval.

Question 3

Joel submitted his 2021/22 electronic tax return on 30 January 2023. As he is having trouble with his cash flow, he decides not to tell HMRC about £50,000 of profits on one of his rental properties and instead moves all of the income to a secret bank account in Jersey.

HMRC must give notice of a discovery assessment by:

a) 31 January 2024
b) 31 January 2029
c) 31 January 2042
d) 5 April 2042

Answer 3

d

If HMRC discover that full disclosure was not made and there is a loss of tax, the HMRC is allowed to collect more tax from the taxpayer. As Joel submitted his tax return on time but deliberately did not disclose some income, a discovery assessment can be made by HMRC up to 20 years from the end of the TAX YEAR to which the return relates.

Question 4

True or false,

a) An appeal against a discovery assessment must be made within a calendar month of the date of assessment

b) The taxpayer must first apply for an internal review before making an appeal to the first-tier tribunal

c) A taxpayer can appeal against and apply to postpone the tax due under an assessment raised as a result of an enquiry into a tax return

Answer 4

a) False

An appeal against a discovery assessment must be made within 30 days of the date of assessment

b) False

c) True

Question 5

What is the due date for PAYE relating to the final month of 20/21?

Answer 5

22 April 2021

PAYE is paid electronically 17 days after the end of each tax month (5 April)

Question 6

What are the QE dates

Answer 6

31 Jan

30 April

31 July

31 Oct

Question 7

When is a corporation tax return due?

Answer 7

1st anniversary of end of AP

If filed late: QE following 1st anniversary of submission

Question 8

In what scenarios can VAT errors be corrected on the next return?

Answer 8

Look on tax tables!