Income tax administration Flashcards
What is the deadline for a taxpayer to file an electronic income tax return?
January 31 following the tax year, or 3 months from the date the tax return is issued by HMRC (whichever is later).
E.g. for the tax year 20/21, file by January 31, 2022.
What is the deadline for a taxpayer to file a paper income tax return?
October 31 following the tax year, or 3 months from the date the tax return is issued by HMRC (whichever is later).
E.g. for the tax year 20/21, file by October 31, 2021.
By when can HMRC correct errors in a taxpayer’s income tax return?
Within 9 months of the date on which the return is actually filed.
What is the time limit for a taxpayer to correct errors in their income tax return?
The taxpayer has the right to amend a tax return for any reason within 12 months of the normal due submission date (not the actual submission date).
For amendment purposes, the due submission
date is the later of 31 January following the end of the tax year or three months after the return was
issued.
What is the time limit for a taxpayer to claim “overpayment relief” if an error has caused an overcharge of tax?
Such a claim must be made within four years of the end of the tax year to which the tax return relates.
By when must employers make payments to HMRC of income tax and NICs withheld from their employee’s paychecks?
Payment is due on the 19th of each month.
If made electronically, the due date is the 22nd of each month.
How many employees must a company have before it is required to make PAYE payments electronically?
250 employees.
Under what circumstances can employers make PAYE payments quarterly, rather than monthly?
Quarterly payments are allowed if the employer’s average monthly payment of PAYE and NICs is not more than £1500 in total.
Under what circumstances can HMRC require an employer to make a security deposit in respect of PAYE payments?
When an employer has:
- deliberately not paid PAYE/NIC, or
- built up large PAYE/NIC debts, or
- not responded to HMRC’s attempts to contact them.
What is the punishment for failing to provide a security deposit required by HMRC?
A fine of up to £5000.
When can a trader use the cash basis to calculate their taxable trading profits?
Cash receipts of all of the trader’s businesses combined must be less than £150,000 for the year.
