Income Tax & Administration

Question 1

What is the 23/24 tax year ?

Answer 1

6th of April 2023 - 5th April 2024

Question 2

Uk resident rule ?

Answer 2

An individual who is a resident in the uk is liable to uk income tax on his income arising throughout the world

Question 3

Uk income rule ?

Answer 3

A person not resident in the uk is only liable to uk tax on income arising in the uk

A person is considered a resident if either

A) he is physically present in the uk for six months (183 days) or more in a fiscal year

B) he makes habitual visits to the uk defined to be for an average of 91 days in a four year period

Question 4

What factors influence tax

Answer 4

Economic
Environment
Social

Question 5

Tax evasion (illegal)

Answer 5

Seeking to pay no or little tax by either

A) hiding information and facts from hmrc

B) providing hmrc with deliberately false information

Question 6

Tax avoidance (legal)

Answer 6

Any legal method of reducing your tax burden, taking advantage of any tax shelter offered by legislation

Some tax avoidance arrangements may be subject to general anti abuse rule (GAAR)

GAAR enables hmrc to counteract tax advantages arising from abusive tax arrangements

Question 7

What is the self assessment system ?

Answer 7

Last filling date is 31st October following the end of a tax year for a paper return

Or 31st January following the end of a tax year for an electronic return

Records must be melts for 1 years (5 years for business) , the time after which no chance of hmrc enquiry into the return

Question 8

What is the exceptions to the self assessment

Answer 8

If notice to file return is issued by hmrc between august and the 31st of October

Question 9

How do you pay tax liability (self assessment)

Answer 9

Two equal (50%) payments on account

Payment 1- 31st of January in the tax year

Payment 2 - 31st July following the end of tax year

Payment 3 - 31st of jan following the end of tax year settle any remaining liability’s

Question 10

The