NIC and personal tax admin Flashcards
when is class 1A NIC payable?
19/07 OR 22/07 if electronic payment
What ages have to pay 1y and 1A NICs?
16 to 65
what are NICs charged on>
earnings in money AND vouchers but not other benefits
what is the employment allowahce:
A company with employees have their 2y class 1 nics reduced by £3k per employer
pension advice up to how much (for all employees) is an exempt benefit?
£150
what are the functions of forms p11d, p60 and p45?
p11d = details of benefits provided
p60 is details of gross pay, tax deducted and NICs
p45 is particulars of employee leaving: tax code, gross pay to date, tax and NICs deducted
how are late paye RETURNS fined?
1st occasion in a year = nil
2nd, 3rd and 4th occassions = 1% of unpaid tax
5th, 6th, 7th occassions = 2% of unpaid tax and 8th,9th,10th occassions = 3% of unpaid tax
11th + occassions = 4%
what are the key dates for self-assessment?
5/10/20, inform HRMC if not automatically issued a tax return
31/10/20, submit paper return
31/01/21, submit electornic return
OR 3 months from when returm issued, if this is later
how long do people have the right to amend tax returns for?
if HMRC made an error, they have within 9/12 of the actual filing date
if the taxpayer wants to for an reason, they have within 12/12 of the normal submission date (31 Jan)
if they have been overcharged tax, they have within 4 years of the end of the tax year
when are class 2 NICs due for 19/20?
31/01/2021
how does payment on account for 19/20 tax work?
you pay 50% of the previous year’s income tax (not deducted at source) on 31/01/2020 and the other half on 31/07/2020, the balance is sorted out on 31/01/2021
POA not required if last year’s self-assess tax paid was less than £1k OR less than 20% of total liability
whats is charged with balancing payments for self-assessment?
- income tax and class 4 NIC balance
- CGT
- class 2 nic
- IF BALANCE <3k then an employed tax payer can choose for this to be collected via next year’s PAYE to do this the tax payer must file online by 30/12 or 31/10 for paper returns
do late payment penalties apply to payments on account?
no
how do you work out interest on late paid POA, balancing payments, penalties?
3%, work to nearest day and pound, don’t include the first and last day of the times
what are the time limits for keeping records for:
- corporation tax
- income tax and CGT
- VAT
corp tax = 6 years from end of accounting period
income tax and cgt = 5th anniversary of 31 Jan following end of tax year (if business), 1st anniversary of 31 Jan following end of tax year (if not in business)
vat = 6 years
