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
what is the fine for not having kept your records?
£3k for each year/accounting period
what are the potential fines that senior accounting officers may be liable for if adequate records are not kept?
£5k if turnover >£200m and/or BS totoal > £2bn at end of previous finanical year
for cgt, are repairs and redecoration counted as capitalisable or not?
they aren’t capitalisable
when exactly is a capital gains disposal counted as occurring at?
at date when coontract signed or if there are conditions, then when the conditions are satisfied.
how much is the capital gains annual exemption?
£12k
what does taxable gains mean?
it means that the annual exempt amount has already been taken off
how does cost >6k and sold =< 6k work on cgt chattel table?
GROSS proceeds deemed to be £6k
cost <6k and sold >6k, how does this chattel table rule work?
max. gain cannot exceed 5/3 of GROSS proceeds -6k
for the 5/3 thing, do you take the lower or higher amount?
lower, cgt is nice :)
is cleaning and repair a capital expense?
no
what do you have to remember with regards to NICs for companies?
the EMPLOYMENT ALLOWANCE! £3K for any company with an employee (other than a director)
what do you have to do POas for?
Income tax and NicS, NOT CGT!!
what is the annual cgt exemot amount?
£12k!!!!!! for everyone!!!! take this off the amount prior to putting into tax brackets
when cost of a non-wasting chattel is more than £6k but sold for
Whichever is less of a loss of actual loss vs £6k - sales fees - original cost
