E (Self-Assessment) Flashcards
When must a company file its return? (late rof)
12 months after the end of the accounting period
3 months after the date on which the notice requiring the return is served.
When can companies amend returns?
At any time within 12 months of the filing date
When can HMRC correct obvious errors?
Within 9 months of the actual (as opposed to the prescribed) filing date
How long must companies retain records supporting the tax return?
Until the sixth anniversary of the relevant filing date
If no return is filed?
HMRC can issue a determination of the self-assessment and the tax payabl
If HMRC requests an additional return before the sixth anniversary?
The time limit is extended until either the compliance check is completed or the time limit allowing HMRC to start such an enquiry has expired
What is defined as a small company?
Below the threshold of £1.5m
Number of instalments for accounting period 9 < period <= 12?
4
Number of instalments for accounting period 6 < period <= 9?
3
Number of instalments for accounting period 3 < period <= 6?
2
Number of instalments for accounting period less than 3 months?
1
When do alrge companies escape quarterly settlement?
Profits for the relevant accounting period do not exceed £10 million
It was not a large company in the previous accounting period
Late submission for corporation tax return (up to 3 months)
£100
Late submission for corporation tax return (more than 3 but less than 6)
£200
Late submission for corporation tax return (more than 6 but less than 12)
£200 + 10% of any unpaid tax for the relevant accounting period
Late submission for corporation tax return (12+)
£200 + 20% of any unpaid tax for the relevant accounting period
Failure to retain tax records maximum penalty?
Up to £3000
Which months do large companies pay their corporation tax liability in instalments?
Months 7, 10, 13 and 16
Corporation tax self-assesment tax return deadline for 31 March 2024?
Must be submitted by 31 March 2025
When is payment of corporation tax liability for the year to 31 August 2023?
1 June 2024
When is payment of corporation tax for four month-period ended 31 December 2023?
1 October 2024
When is a large company not required to make quarterly payments?
In the first year that it is large
Failure to retain records results in a penalty?
Of up to £3000 per accounting period
How long must a corporation retain records for preparing a self-assessment corporation tax return?
31 March 2030
When must HMRC give written notice before commencing a compliance check?
Within 12 months of the 31 January, 30 April, 31 July or 31 October following the actual filing date of the tax return to HMRC
First corporation tax quarterly payment date?
6 and a half months after start of current accounting period. Then every 3 months
Last corporation tax quarterly payment date?
3 and a half months after the end of current accounting period
Submission returns for CT 600 time frame?
12 months after the end of the accounting period
What is the corporation tax liability payment deadline?
9 months and 1 day after tne end of the accounting period (e.g. 1 January 2025)
When are no quarterly payments required?
Augmented profits are less than £10 million
Not large in previous year
Quarter days for compliance checks?
31 January
30 April
31 July
31 October
ISA amount?
£20000
Financial year runs from?
1 April to 31 March
Is double taxation allowed/
NO
Upper tier tribunal is for?
More complex cases
What does GAAR attempt to do?
Counteract tax advantages arising from tax arrangements that are considered particularly abusive
What are statements of practice?
Issued by HMRC to assist in interpreting the meaning and application of the statute law
What are extra-statutory concessions?
Provisions for the relaxation of the strict application of the law where it would lead to anomalies or hardship
What does HMRC do?
Tax returns, compliance checks and penalties
Income tax characteristics?
Direct revenue
Corporation tax characteristics?
Direct both
CGT characteristics?
Direct capital
IHT characteristics?
Direct capital
VAT characteristics?
Indirect neither
NIC characteristics?
Direct revenue
When there’s suspicisons in taxing practice?
Accountant must first make client change it. If they don’t, cease to act and report them to HMRC (but don’t tell them)
Penalty for filing a corporation taxation penalty for year ended 31 December 2023 on 31 August 2025?
Fixed penalty + (10% of tax due)
Where does loss relief in corporation tax liability come from?
The trading loss figure
Is loss relief done before QCDs?
YES, but just for carry forward
How is SBA treated in the main computation?
The exact same way as capital allowances
Loss for a full period then a seven month period before that?
Full relief, then relief * 5/12
How to calculate CGT saved?
AEA + BRB
When is a deferred gain in a depreciating asset realised?
Sale
Ceasing
Ten-year aniversary
STC
Difference in QCDs between carry forward, carry back and current year?
Current year and carry back QCDs can’t be prevented unrelieved
Carry forward can prevent this
What reliefs are available for a group?
Carry back
Current year
Carry forward
Claim for BADR date?
31 january 2026
Claim for investor’s relief date?
31 January 2026
Claim for rollover relief date?
5 April 2028
Loss relief (individual) date?
31 January 2026
Carry forward loss relief (individual) date?
5 April 2028
Terminal loss relief (individual) date?
5 April 2028, done on LIFO basis
Early trade loss relief (individual) date?
31 January 2026, FIFO basis
Current period and carry back loss relief (company) date?
Within two years of the end of the accounting period
Carry forward relief (company) date?
Within two years of the end of the accounting period in which loss is relieved
What happens to VAT on capital allowances?
It is deducted
Child benefit income tax charge starting amount?
£1248 * 1% * benefit
Where is the main distinciton in section C 10 mark questions?
Between dividends and director’s renumeration
Are dividends relevant in a corporation tax working?
No
What happens with employer’s NIC in a corporation tax working?
Deducted
Class 1A due date?
22 July 2024
P11D due date?
6 July 2024
When is indexation not allowable?
If it increases a capital loss
What happens with property business loss (company)?
Carried forward and relieved against total profits same way as a trading loss
First consideration of CGT?
An individual should make use of AEA. If AEA is already used, it may be better to use gain in another year
Second consideration of CGT (rate)
Rate of tax in relation to individual’s taxable income. Gains should be made to individual who has lowest amount of taxable amount
Third consideraiton of CGT?
Timing of payment of CGT. May be better to make a gain early in a tax year tather than late in tax year to give longest gap between receiving proceeds and paying the tax due
Loss relief against total income (individual) date?
31 January 2026
Carry forward loss relief is done against and date (individual)?
Trading profit, for 5 April 2028
Calculate balancing payment in annual accounting?
Net VAT liability for current year - (payment on account * 9)
Deemed occupation (classified as exempt) for working away from home
Period not exceeding four years
Letting relief?
Lower of:
PRR
Attributable to letting (non-PRR)
£40000
Deemed occupation (classified as exempt) for being employed abroad?
Period where employed abroad
Deemed occupation (classified as exempt) for any reason apart from working away from home or being employed?
Period not exceeding three years
What happens with non-trade interest in TTP?
Added in TTP, not deducted
Dividends received from UK companies in TTP?
Deducted in TTP
Lifetime tax on CLT payment made between 6 April and 30 September date?
Payment date of 30 April following the end of the tax year
Death tax on IHT payable on death estate date?
Due within 6 months of the end of the month of death
Dividends received in corporation tax computatuin?
Deducted in the working
Loan for machine (trade or non-trade)
Trade
Loan for running the business (trade or non-trade)
Trade
Loan for purchase a warehouse (trade or non-trade)
Trade
Loan for purchase a property to be let out (trade or non-trade)
Non-trade
Loan to buy shares in another company (trade or non-trade)
Non-trade
Time limit for a claim on a nil rate band?
Two years
Can chargeable gains be included in profit for group relief?
Yes, but not for loss
How can a capital loss be treated?
Set off against chargeable gains for current year or carried forward indefinitely to next chargeable gains
Are building costs of extension included in capital allowances?
NO
Are refrigerator and microwave cooker costs included in capital allowances?
NO
What is group relief against?
Taxable total profits after QCD
Group relief against claimant company (the company that owns)
The profit (includes QCD), not losses
Is loss relief done before QCD?
Yes, group is relief is done after QCD
Is group relief done after QCD?
Yes
What determines the capital allowances time frame?
The length of the accounting period
When is there no excess QCD to surrender?
When QCD doesn’t exceed total profits
Are trading losses brought forward included in the calculation for group relief?
NO
PAYE date for tax month 6th June to 5th July (electronically)
22nd July
PAYE date for tax month 6th June to 5th July (cheque)
19th July
If an employer’s monthly average is less than £1500?
They can pay quarterly on 5 January, 5 April, 5 July, 5 October
Can loss relief for an individual be used against chargeable gains?
Yes
When question says earliest claim(s) to set his individual trading loss against total income
Do first year
When question says claim relief as soon as possible?
Do year of loss
When question says claim maximum loss relief as soon as possible
Claim against previous year if the profits are larger than current year
Which loss relief is not available to a partner when they leave a partnership?
Carry forward for set off against future profits
If a part of a home is exclusively for business purposes (CGT)?
There will be some CGT to pay
Supplies between companies in a VAT group?
Would be disregarded for VAT purposes
Supplies from a subsidiary to outside VAT group treatment?
As a supply to the parent
What does tax point determine in terms of input and output?
When output tax must be accounted for and credit for input tax will be allowed
What figures are used in home entertainment system?
Benefit for use in current year
Benefit in acquistion
Both figures are positive
Is class 1 NIC liability part of a corporation tax liability?
YES
WHat taxes need to be looked out for when calculating a tax beneficial question in a 10 mark?
Corporation tax liability
NIC
Income tax liability
NIC for a limited company in a 10 mark question?
Use the 13.8% rate
How are employer’s contributions treated in corporation tax computation?
Deducted
Is corporation tax included in renumeration only?
NO
Relevant earnings for pensions relate to?
Contributions to peqrsonal pension schemes and to occupartional pension schemes
When tax-relievable pension contruibutions exceed annual allowance?
There is a charge to income tax
What taxes are premium ponds exempt from?
Income and capital gains tax
What taxes are government securities exempt from?
Capital gains tax
Does spouse exemption apply to capital gains tax?
No, but does apply to inheritance tax
When is 10% CGT calculated after?
Deduction of allowable losses
Benefit for delaying sale of shares in capital gains?
The tax liability would be due later resulting in a cash flow benefit
Which inheritance tax is paid by the trustees?
Six months after the end of the month in which the donor died
Which inheritance tax is paid paid by Percy?
Six months from the end of the month in which the gift was made
Does skipping a generation change IHT on the estate?
NO
Does goodwill qualify for rollover relief for a company?
NO
When partnership leaves flat rate scheme?
It can’t rejoin for another 12 months
If client refuses to register for VAT?
Cease acting for client and report under money laaundering regulations
Refund on VAT for a photocopy hire in 31 March 2024?
Four year time limit
£18 * 51 months
What is not a statutorial legislation?
HMRC Statement of Practice 1
Interest received on a repayment of income tax exempt for income tax?
Yes
Dividends received from an ISA for income tax?
Yes
Loss relief not available for chargeable gains?
Carry forward losses set off against future losses
Legal fees for a private matter (allowable/disallowable)?
DIsallowable
Does a delivery van qualify for AIA?
YES
When spouse transfers their personal allowance?
Usually 1260 * 20%
When private use element of fuel is reimbursed?
Output: Input VAT * private use %
Input: Input VAT
Does a lorry qualify for AIA?
YES
When is a lease premium deducted?
When a trader has paid a premium for granting a short lease, otherwise it is added to property income
When can transfer of PA to wife be done?
Provided wife is a basic rate taxpayer
When must trading loss for invidiual for setting off against chargeable gains done?
After deducting current year capital losses, but not before unrelieved capital losses
Loan interest not made for trading purposes and corproation tax?
Not included in corporation tax working
When a company has straight forward accounts?
Could use software provided by HMRC. If complex, use iXBRL
When parent receives dividends from sub?
It is exempt income
Interest free loan of £84000 calculation?
£84000 * 2.25% * time-apportion
When is group relief deducted?
AFTER FUCKING QCD
When is class 2 NIC collected?
On 31 January
