Administration of tax Flashcards
When must an individual liable to IT or CGT notify chargeability by?
Before 5th October following the end of the tax year.
How long do HMRC have to amend obvious errors?
Within 9 months of filing date.
How long does the taxpayer have to amend a return for obvious errors?
Within 12 months of the later of:
- 31 Jan after end of tax year
- 3 months after issuement
When should employers report to HMRC?
Every time a payment is made to an employee
What is the FPS?
Full Payment Submission - payroll software
When should FPS be submitted?
On/before payday
When should employers pay PAYE and NICs?
22nd of the month following the payroll month.
E.g. 31st March payday, 22nd April pay PAYE and NIC
What is the P11D form?
End of year form recording details of benefits provided to employees
Pay by 6th July following end of tax year
What is the P60 form?
End of year form recording details of gross pay, tax deductions and NICs for employee and employer
Due 31 May following tax year end
What is the P45 form?
Particulars of employee leaving: tax code, gross pay to date, tax and NICs deducted.
How long does it take penalty points accumulated to expire?
2 years unless a threshold has been reached
How can a business reset its points to 0?
When all VAT returns have been submitted on time and all VAT returns in the last 2 years have been submitted
When can non-deliberate VAT return errors be corrected?
On the next return providing it doesn’t exceed £10k or 1% of net VAT turnover
IN THE TABLES
How long must a record of Corporation tax be kept for?
6 years from end of accounting period
When must HMRC give notice by to conduct an enquiry?
First anniversary of the actual submission date or the quarter day following the first anniversary
When can HMRC make a discovery assessment?
If full disclosure has not been made by the taxpayer
When are the submission dates for personal self-assessment tax returns?
IN THE TABLES
When are the payment dates or income tax?
IN THE TABLES
How are balancing payments calculated?
Add:
Income tax
Class 2 NIC
Class 4 NIC
CGT
Less:
POA
Tax paid under PAYE
How are payments on account (POA) calculated?
1/2(IT + Class 4 NIC) paid under self assessment for the previous year
What’s the best way to display dates?
USE A TIMELINE
What are the penalties for late filing of a self-assessment return?
IN THE TABLES
What are the penalties for late payment of a self-assessment return?
IN THE TABLES
When must new companies give notice to HMRC about a return?
3 months after start of their 1st accounting period (source of taxable income)
