Ch17: Self-Assessment and Payment of Tax by Individuals Flashcards
(1) Notifications of Liability to Income Tax and CGT. (2) Self-Assessment Tax Returns. (3) Records (4) Payment Dates (5) Compliance Checks and Appeals
Notify liabilities of Income Tax and CGT to HMRC by:
5th October following the end of the TY.
Penaltie % for INCORRECT RETURNS?
- 30% = Not Deliberate
- 70% = Deliberate
- 100% = Deliberate and Conceals
Self-Assessment Tax Returns are due by:
PAPER = 31st October following the end of the TY.
ELECTRONICALLY = either:
(1) 31 January following the end of the TY.
(2) 3 months from when HMRC issued a notice to file a tax return IF that date is LATER THAN 31 October / January.
Penalties for LATE FILING?
0-3 months = £100
3-6 months = £10 per day
6-12 months = HIGHER OF: (1) 5% of Unpaid Tax OR (2) £300.
12+ months = HIGHER OF: (1) % of Unpaid Tax OR (2) £300.
Amendment dates for
(i) Taxpayers and
(ii) HMRC?
(i) TAXPAYERS = Within 12 months after the filing date.
(ii) HMRC = Within 9 months after filing date. Taxpayers can object to these corrections within 30 days of receiving the notice.
How many years are you required to keep records for if you are STILL in business?
5 years after 31 January following the TY.
How many years are you required to keep records for if you are NOT in business?
1 years after 31 January following the TY.
Penalty for failure of retaining records?
£3,000.
Payment dates for Income Tax and Class 4 NIC?
2 equal POA by 31 January (during TY) and 31 July (following end of the TY).
Payment dates for any balancing payments (after the Income Tax and Class 4 NIC)?
31 January following the end of the TY.
Also includes Class 2 NIC
NO POA
INTEREST on Late Paid Tax if Underpaid Tax and Overpaid Tax?
Underpaid Tax = 6.5%
Overpaid Tax = 3%
PENALTIES on Late Paid Tax?
On or Before Penalty Date = 0%
<5 months after = 5% of unpaid tax.
5-11 months after = 10% of unpaid tax.
11+ months after = 15% of unpaid tax.
