An introduction to self-assessment COPY

Question 1

When must taxpayers notify HMRC of their chargeability to income tax?

Answer 1

By 5 October following the end of the tax year.

Question 2

What is the maximum penalty for failing to notify HMRC of chargeability due to deliberate and concealed behaviour?

Answer 2

100% of the potential lost revenue.

Question 3

What is the minimum penalty for unprompted disclosure of failure to notify within 12 months?

Answer 3

Nil.

Question 4

By when must paper tax returns be submitted to HMRC?

Answer 4

By 31 October following the tax year.

Question 5

By when must electronic tax returns be submitted to HMRC?

Answer 5

By 31 January following the tax year.

Question 6

What is the initial penalty for filing a tax return more than 3 months late?

Answer 6

£100.00

Question 7

What daily penalty applies for a tax return that is over 6 months late?

Answer 7

£10 per day, up to a maximum of 90 days.

Question 8

What additional penalty applies for a tax return that is over 12 months late?

Answer 8

5% of the liability to tax (or £300 if greater), with increased penalties if deliberate or concealed.

Question 9

What is the penalty for a deliberate but not concealed failure to notify, with a prompted disclosure, after 12 months?

Answer 9

20% of the potential lost revenue.

Question 10

Who can amend errors in a return within nine months of receiving it?

Answer 10

HMRC (TMA 1970, ss.9ZA(2), (3) and 9ZB(1)–(3))

Question 11

Within how many months can a taxpayer amend a return from the normal filing date?

Answer 11

12 months (TMA 1970, s.9A(2))

Question 12

When must an enquiry notice be given to the taxpayer by HMRC?

Answer 12

By the first anniversary of the actual submission date, or if the return is filed after the normal filing date, the quarter day following the first anniversary of the actual filing date

Question 13

What are the calendar quarter end dates?

Answer 13

30 April, 31 July, 31 October, 31 January

Question 14

How long must a sole trader, partner, or letting property owner keep records?

Answer 14

Five years from 31 January following the tax year

Question 15

How long must anyone else keep records?

Answer 15

One year from 31 January following the tax year

Question 16

What is the maximum penalty for failure to keep proper records?

Answer 16

£3,000 for each failure

Question 17

When should provisional figures be used in a return?

Answer 17

If the taxpayer has insufficient information to complete the return on time (TMA 1970, s.12B(5))

Question 18

Within how many days must a notice of appeal be given if a taxpayer disagrees with an HMRC decision?

Answer 18

Within 30 days of the amendment or assessment

Question 19

To whom are appeals made in the first instance?

Answer 19

HMRC

Question 20

What can a taxpayer do if an appeal cannot be settled by agreement with HMRC?

Answer 20

HMRC may offer a review, or the taxpayer can ask HMRC to review their decision or ask the Tribunal to consider the appeal (TMA 1970, s.31A)

Question 21

What is the Tribunal in the context of tax appeals?

Answer 21

An independent legal body consisting of expert tax judges and/or panel members

Question 22

What determines the level of penalty for incorrect returns?

Answer 22

The seriousness of the offence that gives rise to the error (FA 2007, Sch 24)

Question 23

What is the maximum penalty for a careless action?

Answer 23

30%

Question 24

What is the minimum penalty for a careless action with unprompted disclosure?

Answer 24

0%

Question 25

What is the minimum penalty for a careless action with prompted disclosure?

Answer 25

15%

Question 26

Can the penalty for a careless action be suspended?

Answer 26

Yes, it can be suspended for two years

Question 27

What is the maximum penalty for a deliberate but not concealed action?

Answer 27

70%

Question 28

What is the minimum penalty for a deliberate but not concealed action with unprompted disclosure?

Answer 28

20%

Question 29

What is the minimum penalty for a deliberate but not concealed action with prompted disclosure?

Answer 29

35%

Question 30

What is the maximum penalty for a deliberate and concealed action?

Answer 30

100%

Question 31

What is the minimum penalty for a deliberate and concealed action with unprompted disclosure?

Answer 31

30%

Question 32

What is the minimum penalty for a deliberate and concealed action with prompted disclosure?

Answer 32

50%

Question 33

Who must register a partnership with HMRC?

Answer 33

The nominated partner

Question 34

What must a partnership tax return comply with?

Answer 34

It must be completed and filed within the normal deadlines

Question 35

Do individual partners need to file their own tax returns?

Answer 35

Yes, individual partners must also file their own tax returns

Question 36

How do amendment rules apply to a partnership return?

Answer 36

The rules apply in the same way as to individual returns, and an amendment to a partnership return will result in corresponding amendments to the partners’ own returns (TMA 1970, ss.12ABA(3) and 12ABB(6))

Question 37

What happens if there is an enquiry into a partnership return?

Answer 37

It will automatically extend to the individual partners’ returns (TMA 1970, s.12AC(6))