HMRC Powers etc

Question 1

unit/value tax principle?

Answer 1

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

Question 2

expenditure principle

Answer 2

based on how much an individual spends

Question 3

neutrality principle

Answer 3

clues in the name- is neutral. tax is neutral so not to distort choice- gov doesn;t always want tax to be neutral

Question 4

equity principle

Answer 4

tax should be ‘just’

Question 5

two types of compliance checks?

Answer 5

pre-return checks and enquiries into returns

Question 6

notice of intention to enquire?

Answer 6

1 year from actual submission date. if late- the qaurter day thing

Question 7

income/capital/expenditure

Answer 7

just that these things are taxed

Question 8

ability to pay/benefit

Answer 8

ability to pay- based on the ability of the tax payer to pay them.
taxes based on the benefit that they receive

Question 9

efficiency principle

Answer 9

cost of collecting the tax should be low in proportion to the tax raised

Question 10

discovery assessments?

Answer 10

c-6
d-20
other -4

Question 11

how long does tax payer have to appeal?

Answer 11

30 days i.e. NOT calendar month

Question 12

appeal on point of law to…

Answer 12

upper tribunal

Question 13

tax chamber of

Answer 13

the first tier tribunal

Question 14

appeal against discover y assessment?

Answer 14

yes

Question 15

appeal against request to submit documents?

Answer 15

yes

Question 16

app against amendments to self assessment?

Answer 16

yes

Question 17

app against vat assess and penalties?

Answer 17

yes

Question 18

app agaisnt inepction notice?

Answer 18

NO

Question 19

third party notices?

Answer 19

must have authority of taxpayer or first tier tribunal

Question 20

do tax adivisors and auditors have to provide info related to thier function?

Answer 20

no

Question 21

right of appeal against info notices issues by first tier tribunal?

Answer 21

no

Question 22

appeal against info notice which relates to staturoty records?

Answer 22

no

Question 23

how much notice for inspection/ OR whose approval needed?

Answer 23

7 days or approved by authorised hmrc officer.

Question 24

civil penalty for dishonest conduct?

Answer 24

5000-50000

Question 25

if hmrc suspect dishonest conduct by a tax agent…

Answer 25

issue conduct ntoice, file acess notive to obtain working papers, publish their name and address and inform their professional body

Question 26

BPSS

Answer 26

helping those unable to meet tax payments - agree to spread payments over longer period- no penalty but interest still applies

Question 27

budget payment plans

Answer 27

set up direct debits to save up for tax in advance

Question 28

hmrc determination

Answer 28

if no return submitted, interest and penalties can be charges, must be made within 3 yrs of filing date

Question 29

who will mtd only apply to initially?

Answer 29

over vat thres

Question 30

when can people use cash basis

Answer 30

r’s less than 150,000

must leave if receipts in pervious year are greater than 300,000

Question 31

capital expenditure under cash basis

Answer 31

allowable

Question 32

proceeds on disposal of p and m

Answer 32

taxed as receipts

Question 33

amounts paid on leased cars under cash basis?

Answer 33

allowed in full

Question 34

interest on loans?

Answer 34

allowed up to a max of 500

Question 35

when trader takes stuff out of business?

Answer 35

jus and reasonable amount added back i.e. cost

Question 36

paye deadline for electronic payments

Answer 36

22nd

Question 37

if monthly total of paye is greater than 1500

Answer 37

can pay quarterly

Question 38

required to provide a security if… and penalty?

Answer 38

if paye/nic is at risk and penalty is a fine up to 5,000

Question 39

what cannot be voluntary payrolled?

Answer 39

cheap/beneficial loans and living accomodation

Question 40

do hmrc look after minimum wage and universal credit?

Answer 40

yes

Question 41

statements of practice vs extra statutory concessions?

Answer 41

hmrc’s interp of the law vs their relaxation of their interpretation of the law

Question 42

is cash an exempt assest from cg?/gilt edged securs?

Answer 42

yes

Question 43

capital expenditure on cars under cash basis?

Answer 43

not allowable- claim ca as usual

Question 44

what are the thresholds for cash basis?

Answer 44

150,000 and 300,000