HMRC Powers etc Flashcards
unit/value tax principle?
fixed amount on each unit- you’ll know it if you see it. flat rate per item=unit tax. value tax= percentage of item e.g. vat
expenditure principle
based on how much an individual spends
neutrality principle
clues in the name- is neutral. tax is neutral so not to distort choice- gov doesn;t always want tax to be neutral
equity principle
tax should be ‘just’
two types of compliance checks?
pre-return checks and enquiries into returns
notice of intention to enquire?
1 year from actual submission date. if late- the qaurter day thing
income/capital/expenditure
just that these things are taxed
ability to pay/benefit
ability to pay- based on the ability of the tax payer to pay them.
taxes based on the benefit that they receive
efficiency principle
cost of collecting the tax should be low in proportion to the tax raised
discovery assessments?
c-6
d-20
other -4
how long does tax payer have to appeal?
30 days i.e. NOT calendar month
appeal on point of law to…
upper tribunal
tax chamber of
the first tier tribunal
appeal against discover y assessment?
yes
appeal against request to submit documents?
yes
app against amendments to self assessment?
yes
app against vat assess and penalties?
yes
app agaisnt inepction notice?
NO
third party notices?
must have authority of taxpayer or first tier tribunal
do tax adivisors and auditors have to provide info related to thier function?
no
right of appeal against info notices issues by first tier tribunal?
no
appeal against info notice which relates to staturoty records?
no
how much notice for inspection/ OR whose approval needed?
7 days or approved by authorised hmrc officer.
civil penalty for dishonest conduct?
5000-50000
if hmrc suspect dishonest conduct by a tax agent…
issue conduct ntoice, file acess notive to obtain working papers, publish their name and address and inform their professional body
BPSS
helping those unable to meet tax payments - agree to spread payments over longer period- no penalty but interest still applies
budget payment plans
set up direct debits to save up for tax in advance
hmrc determination
if no return submitted, interest and penalties can be charges, must be made within 3 yrs of filing date
who will mtd only apply to initially?
over vat thres
when can people use cash basis
r’s less than 150,000
must leave if receipts in pervious year are greater than 300,000
capital expenditure under cash basis
allowable
proceeds on disposal of p and m
taxed as receipts
amounts paid on leased cars under cash basis?
allowed in full
interest on loans?
allowed up to a max of 500
when trader takes stuff out of business?
jus and reasonable amount added back i.e. cost
paye deadline for electronic payments
22nd
if monthly total of paye is greater than 1500
can pay quarterly
required to provide a security if… and penalty?
if paye/nic is at risk and penalty is a fine up to 5,000
what cannot be voluntary payrolled?
cheap/beneficial loans and living accomodation
do hmrc look after minimum wage and universal credit?
yes
statements of practice vs extra statutory concessions?
hmrc’s interp of the law vs their relaxation of their interpretation of the law
is cash an exempt assest from cg?/gilt edged securs?
yes
capital expenditure on cars under cash basis?
not allowable- claim ca as usual
what are the thresholds for cash basis?
150,000 and 300,000
