Principles of Taxation

Question 1

What is the tax/fiscal year?

Answer 1

6th April - 5th April

Question 2

What is the financial year?

Answer 2

1st April - 31st March

Question 3

What day of the month should normal IT and NICs be paid?

Answer 3

19th each month.

Question 4

What day of the month should electronic payments of IT and NICs be paid?

Answer 4

22nd each month.

Question 5

When should the P11D be issued to HMRC and the employee?

Answer 5

6th July after the end of the tax year.

Question 6

When should the P60 be issued to the employee?

Answer 6

31st May after the end of the tax year.

Question 7

What is the deadline for informing HMRC about the need to have a self-assessment?

Answer 7

5th October after the end of the tax year.

Question 8

What is the deadline for submission of a paper return?

Answer 8

31st October after the end of the tax year or 3 months after the return is issued if later.

Question 9

What is the deadline for submission of an electronic return?

Answer 9

31st January after the end of the tax year or 3 months after the return is issued if later.

Question 10

Within how long do HMRC have a right to amend a tax return dues to errors?

Answer 10

Within 9 months of the actual filing date.

Question 11

Within how long does the taxpayer have the right to amend a tax return for any reason?

Answer 11

Within 12 months of the normal submission date which is 31 January.

Question 12

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?

Answer 12

Within 4 years of the end of the tax year.

Question 13

What are the payment dates for Income Tax and Class 4 NIC’s?

Answer 13

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.

Question 14

When are Class 2 NICs due?

Answer 14

31 January after the tax year end.

Question 15

How is interest on taxation calculated?

Answer 15

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.

Question 16

How many weeks are in a year?

Answer 16

52

Question 17

How many days were in 2020?

Answer 17

366

Question 18

What is the time limit for keeping records for corporation tax?

Answer 18

6 years from the end of the accounting period.

Question 19

What is the time limit for keeping records for income and capital gains tax for a business?

Answer 19

5th anniversary of the 31st January following the end of the tax year.

Question 20

What is the time limit for keeping records for income and capital gains tax for an individual?

Answer 20

1st anniversary of the 31st January following the end of the tax year.

Question 21

What is the time limit for keeping records for VAT?

Answer 21

6 years.

Question 22

How long do companies have to give HMRC a written notice to tell them that they exist?

Answer 22

3 months from when the first accounting period begins.

Question 23

When do HMRC send out corporation tax returns?

Answer 23

31st December.

Question 24

If no return is sent out by HMRC how long does a company have to give a notification of chargeability?

Answer 24

Within 12 months of the end of the accounting period.

Question 25

When do companies have to submit a full corporation tax return?

Answer 25

Within 12 months of the end of the period of account.

Question 26

When should HMRC be notified that you have failed one of the tests for compulsory registration of VAT?

Answer 26

30 days from the day the test was failed.

Question 27

When should a VAT return be filed and paid?

Answer 27

Due 7 days after the last day of the month following the end of the return period.

Question 28

When are the payments on account for VAT due from substantial traders and what is the threshold to become a substantial trader?

Answer 28

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.

Question 29

Under the annual accounting scheme (monthly) when are the POAs and the balancing payment and return due?

Answer 29

POAs = End of every month from month 4-12.

Balancing Payment and Return = 2 months after accounting period.

Question 30

Under the annual accounting scheme (quaterly) when are the POAs and the balancing payment and return due?

Answer 30

POAs = End of months 4,7,10

Balancing Payment and Return = 2 months after the accounting period.

Question 31

For a compliance check what are the HMRC deadlines for a notice of intention to make an enquiry?

Answer 31

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).

Question 32

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?

Answer 32

4 years.

Question 33

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?

Answer 33

6 years.

Question 34

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?

Answer 34

20 years.

Question 35

How long does a tax payer have to appeal a HMRC investigation?

Answer 35

30 days to appeal. Can not appeal an inspection.