Chapter 11-13: Self-Assessment Flashcards
Self-Assessment
Who is the Administrator of Taxes in The UK?
The Commissioners For His Majesty’s Revenue & Customs (HMRC).
Self-Assessment
What is Self-Assessment?
A Regime Which HMRC Assess & Collect Direct Tax in The UK.
(Taxpayers Filing a Tax Return)
Self-Assessment
When Must a Notification of Chargeability to income Tax be Made?
6 Months After The Tax Year End.
(5 October)
Self-Assessment
A Decleration Must be Signed on Tax Return Completion, Which States:
To The ‘Best of my Knowledge and Belief’ The Tax Return is ‘Correct and Complete’.
Self-Assessment
A Paper Return Should be Filed No Later Than:
- 31 October Following The Tax Year End; or
- 3 Months After The Notice to File Issue Date (2 Months if HMRC Calculate the Tax).
Self-Assessment
An Online Return Should be Filed No Later Than:
- 31 January Following The Tax Year End; or
- 3 Months After The Notice to File Issue Date.
‘Normal Filing Deadline’.
Self-Assessment
To Have Tax Collected via The PAYE System, a Taxpayer Must Have:
- Tax Deducted at Source Under PAYE;
- A Tax Underpayment of < £3,000; and
- The Tax Return Filed by 30 December Following The Tax Year End.
Self-Assessment
If a Return is Late, What Penalty is Charged?
£100.
(Immediately)
Even if there are No Amounts Withstanding.
Self-Assessment
How Long Are Taxpayers Given to Amend Their Tax Return.
Within 12 Months of The ‘Normal Filing Deadline’.
Self-Assessment
How Long Should Sole Traders, Partners or Landlords Keep Their Records for?
5 Years From 31 January Following The Tax Year End.
Self-Assessment
How Long Should Anyone Besides Sole Traders, Partners or Landlords Keep Their Records For?
1 Year From 31 January Following The Tax Year End.
Self-Assessment
What’s The Maximum Penalty For Failure to Keep Sufficient Records?
£3,000 For Each Failure.
(Supporting Entries on the Return)
Self-Assessment
How is Each Payment on Account Calculated?
As 50% of the Previous Years’ Tax Due.
(In Respect of Income Tax)
Due 31 January & July.
Self-Assessment
When Does a Balancing Payment Arise?
If Tax Due for The Year Exceeds Both:
* The Relevant POAs; and
* Any Tax Deducted at Source
Due 31 January Following The Tax Year.
Self-Assessment
Late Payment Interest is Calculated Between:
- The Normal Tax Due Date; and
- Actual Date of Payment.
