Mock Case Study Role Simulation

Question 1

What’s a GPR calculation?

Answer 1

GPR = Profit/Turnover x 100.

A low GPR compared to similar businesses or previous years may indicate that margins are being depressed for commercial or other reasons and can be a risk indicator. However, there may be a legitimate explanation - like any ratio, the GPR should not be looked at in isolation.

NOTES: When using ratios in your investigation, remember that they identify areas of potential concern. You shouldn’t confront the customer or agent with the results of your calculations until you have evidence to support them.

Question 2

Does a Director have to declare a Self Assessment Tax Return?

Answer 2

Yes - All income sources, not just salaries and dividends

Question 3

Difference between paying an employee, not a self employed person?

Question 4

What is the NIC lower earning threshold for tax credits/state pensions etc

Question 5

VAT treament on new builds

Question 6

reputational damage to HMRC

Question 7

What is our role as a Compliance Officer

Answer 7

o To ensure our customers pay the right amount of tax at the right time
o Ensure consistency of treatment where there are common risks

During your investigations, you will need to share information with colleagues in other areas to make sure that risks present in their tax regimes are also addressed (cross-tax working).

Question 8

Difference in reliefs for individuals and companies

Question 9

what is a closed company?

Question 10

Opening an ITSA enquiry - what’s the legislation? What’s the LDE?

Answer 10

Section 9A of the Taxes Management Act 1970. This allows HMRC to check Self
Assessment returns.

LDE is Under section 9A of TMA 1970, HMRC holds the right to make formal ‘enquiry’ into every tax return submitted to them. The time limit for commencing an enquiry is 12 months after the day on which the return is carried out.

Unless there was an amendment (12 months from amendment), or late filing (quarter month and 12 monthss together)

Question 11

Opening a CT enquiry - what’s the legislations? What’s the LDE?

Answer 11

Paragraph 24 (1) Schedule 18 of the Finance Act 1998 which allows HMRC to
check Company Tax Returns.

12 months after return is received

Question 12

time limits for assessments

Question 13

Schedule 24 Finance Act

Answer 13

It’s on HMRC to prove this.

Question 14

Discovery Assessments
What is this?
Legislation?
When would it be used?