Principles of Taxation Flashcards
What is the tax/fiscal year?
6th April - 5th April
What is the financial year?
1st April - 31st March
What day of the month should normal IT and NICs be paid?
19th each month.
What day of the month should electronic payments of IT and NICs be paid?
22nd each month.
When should the P11D be issued to HMRC and the employee?
6th July after the end of the tax year.
When should the P60 be issued to the employee?
31st May after the end of the tax year.
What is the deadline for informing HMRC about the need to have a self-assessment?
5th October after the end of the tax year.
What is the deadline for submission of a paper return?
31st October after the end of the tax year or 3 months after the return is issued if later.
What is the deadline for submission of an electronic return?
31st January after the end of the tax year or 3 months after the return is issued if later.
Within how long do HMRC have a right to amend a tax return dues to errors?
Within 9 months of the actual filing date.
Within how long does the taxpayer have the right to amend a tax return for any reason?
Within 12 months of the normal submission date which is 31 January.
Within how long does the tax payer have the right to amend a tax return for over payment relief or an error resulting in overcharged tax?
Within 4 years of the end of the tax year.
What are the payment dates for Income Tax and Class 4 NIC’s?
1st POA = 31 January in the tax year.
2nd POA = 31 July after the tax year end.
Balancing Payment = 31 January after the tax year end.
When are Class 2 NICs due?
31 January after the tax year end.
How is interest on taxation calculated?
Use all of the days in between the actual due date and the date of payment without actually including the due date and the date of payment.
How many weeks are in a year?
52
How many days were in 2020?
366
What is the time limit for keeping records for corporation tax?
6 years from the end of the accounting period.
What is the time limit for keeping records for income and capital gains tax for a business?
5th anniversary of the 31st January following the end of the tax year.
What is the time limit for keeping records for income and capital gains tax for an individual?
1st anniversary of the 31st January following the end of the tax year.
What is the time limit for keeping records for VAT?
6 years.
How long do companies have to give HMRC a written notice to tell them that they exist?
3 months from when the first accounting period begins.
When do HMRC send out corporation tax returns?
31st December.
If no return is sent out by HMRC how long does a company have to give a notification of chargeability?
Within 12 months of the end of the accounting period.
When do companies have to submit a full corporation tax return?
Within 12 months of the end of the period of account.
When should HMRC be notified that you have failed one of the tests for compulsory registration of VAT?
30 days from the day the test was failed.
When should a VAT return be filed and paid?
Due 7 days after the last day of the month following the end of the return period.
When are the payments on account for VAT due from substantial traders and what is the threshold to become a substantial trader?
1st POA = End of the second month in each quarter.
2nd POA = End of the third month in each quarter.
Balancing Payment = End of the month following the end of the quarter.
VAT Liability more than £2.3m.
Under the annual accounting scheme (monthly) when are the POAs and the balancing payment and return due?
POAs = End of every month from month 4-12.
Balancing Payment and Return = 2 months after accounting period.
Under the annual accounting scheme (quaterly) when are the POAs and the balancing payment and return due?
POAs = End of months 4,7,10
Balancing Payment and Return = 2 months after the accounting period.
For a compliance check what are the HMRC deadlines for a notice of intention to make an enquiry?
First anniversary of actual submission date or if filed late the quater date following the first anniversary of the actual submission date (31 Jan/30 April/31 July/31 October).
What is the time limit for a discovery assessment (discovery that full disclosure was not made) where the reason for loss of tax was not due to careless or deliberate behaviour?
4 years.
What is the time limit for a discovery assessment (discovery that full disclosure was not made) where the reason for loss of tax was due to careless behaviour?
6 years.
What is the time limit for a discovery assessment (discovery that full disclosure was not made) where the reason for loss of tax was due to deliberate behaviour?
20 years.
How long does a tax payer have to appeal a HMRC investigation?
30 days to appeal. Can not appeal an inspection.
