CH12 - Tax Admin for Individuals

Question 1

POA Reason

Answer 1

If the income tax liability in previous year is in excess of any tax deducted at source unless:
Total tax liability is less than £1,000
More than 80% of the tax total for prior tax year was met by deduction

Question 2

Self Assessment POA is only required for:

Answer 2

Income tax
Class 4 NICs

Question 3

POA Proforma

Answer 3

Total tax liability for the year (income tax and class 4 NICs)
Less: PAYE
= Relevant Amount

Question 4

IF PAYE Changes = Balancing payment

Answer 4

Total tax Liability for the year (Income tax, Class 2, 4, CGT)
Less: PAYE (changed)
Less: POAs
Balancing payment

Question 5

Interest and Penalties

Answer 5

Occur on POA, balancing payments, tax payable on amendments or discovery of self assessment
Late payment = 6.5% PA
Repayment = 3% PA