Chapter 22 - Obligations for individuals Flashcards
What are the two methods of income tax collection?
1) PAYE system - employment income
2) Self assessment
If income tax is being collected under the self assessment system and by paper return, what is the due date?
By the later of:
1) 31 October after the tax year end
2) 3 months after the return is issued
If income tax is being collected under the self assessment system and by online return, what is the due date?
By the later of:
31 January after the tax year end
3 months after the return issued
How long does HMRC have to correct self assessment tax returns?
9 months
How long does a taxpayer have to inform HMRC that the return should be amended under self assessment?
12 months
When must a tax payer inform HMRC that they have not received a return if they are performing self assessment?
By 5 October following end of the tax year
When would a tax payer not have to inform HMRC of failure to receive a return?
1) There is no CGT liability, and
2) No higher rate or additional rate tax is due, and
3) Either income is covered by personal allowance or all tax due has been deducted at source
What 4 taxes must be paid by 31 January following the end of the tax year?
1) Income tax
2) Class 4 NIC
3) Class 2 NIC
4) Capital gains tax
When are payments on account required?
When class and class 4 NIC for previous years exceed income tax and Class 4 NIC deducted at source
When must a payment on account be made where CGT is payable on a disposal of a property?
within 60 days of completion.
When type of tax penalty will an individual appeal directly to a tribunal?
Indirect (VAT)
Where would an individual appeal for a direct tax penalty?
HMRC
How long must taxpayers who are in business (includes letting of a property) keep there business records for?
5 years after 31 January following the end of the tax year
