Chapter 12 - Payment Dates, Interest, & Penalties Flashcards
When is the first payment on account due?
31 January
When is the second payment on account due?
6 months after the first - 31 July
When does the taxpayer make a ‘balancing payment’?
31 January - when they are in a position to finalise their liability for the year
When is the final date on which all tax must be paid for the tax year?
31 January the following year
What % is each payment on account for the previous tax year?
50%
How do you work out the tax due for 2024/25?
Look at 2023/24 - tax liability less tax deducted at source divided by 2
the resulting number is each payment on account due for 2024/25
Within how many days are UK residents making a direct disposal of UK residential property required to make a payment on account of CGT due?
60 days
What is the current interest rate charged by HMRC?
7.75%
Where the tax due in respect of a tax return is outstanding more than 30 days, what is the penalty?
5% of the unpaid tax
Where the tax due in respect of a tax return is outstanding more than 5 months following the first penalty, what is the penalty?
A further 5%
Where the tax due in respect of a tax return is outstanding more than 11 months following the first penalty, what is the penalty?
A further 5%
True or false
Insufficient funds is not a reasonable excuse for the failure to pay tax
True
