PT Admin Flashcards
What are the minimum and maximum penalties for failure to notify?
Deliberate and concealed
- Max 100%
Minimums
- Unprompted disclosure - 30%
- Prompted disclosure 50%
Deliberate but not concealed
- Max 70%
Minimums
- Unprompted disclosure - 20%
- Prompted disclosure 350%
Careless
- Max 30%
Minimum with disclosure
More than 12 Mo - 10%
Less than 12 Mo
0%
Minimum penalty with prompted disclosure
More than 12 Mo - 20%
Less than 12 Mo
10%
What exceptions are there for a tax return filing deadline?
If the notice to file a tax return is issued by HMRC afyer 31st Jul;y but on or before 31 Oct, the latest filing date is 3 months from the notice for a paper return or just 31 Jan as norm
If the notice is issued after 31st Oct, then the deadline is 3 years after this date.
Penalties for late filing
If the failure continues after the end of the period of 12 months after t the penalty date, a further penalty is payable.
Deliberate and concealed- Greater of:
100% of tax liab and £300
Deliberate and not concealed - Greater of 70% of liab and £300
Any other case such as careless - 5% tax liab and £300
How long does HMRC have to amend a return?
9 months from the date of filing.
Taxpayer can object to this within 30 days.
If payments on account are reduced too much
There will be interest charged ont he difference and it the reduction was fraudulent or negligent, a pentalty can be charged
What is a determination and when must it be made?
Where HMRC determines the amount fo tax payable
Within 4 years following the end of the relevant tax year
What is a discovery assessment?
If HMRC discover that an assessment is insufficent, an assessment may be made to cover the tax lost
They can only be raised when:
There has been a careless or deliberate misstatement
At the time that there were enquires on the return, the officer did not have the information to make them aware of the loss of tax
What is the time limit for raising a discovery?
4 years from the end of the tax year but this is extended to 6 if there has been a careless misstatement and 20 years if deliberate. May appeal within 30 days.
What does HMRC do to dishonest tax agents?
A civil penalty of up to 50k where there has been dishonest conduct and the agent fails to supply the information that HMRC has requested.
Internal reviews
HMRC must usuually carry out the review within 45 days
Tax tribunal hearings
The person wishing to make the appeal must send a notice of appeal to the tax tribunal. The tribunal then give notice to the respondant.
First Tier Tribunal
Upper Tribunal
Court of Appeal
What are the late filing penalties?
0-3 Months - £100
3-6 Months - Extra £10 per day for 90 days
6-12 months - Further penalty of Greater of 5% tax liab and £300
12 months + Further penalty of % of tax liab and £300
Records must be retained until the later of
5 years after the tax return deadline of that year where the taxpayer is in business
Otherwise One year after the deadline
What are the penalties for late paid tax?
Penalty date is 30 days after the due date
On or before penalty date - 0%
Not more than 5 months after penalty date = 5% of unpaid tax
Between 5 and 11 months after penalty date = 10% unpaid tax
More than 11 months past penalty date = 15% of unpaid tax
When must HMRC give notice of a compliance check into a return?
By the first anniversary of the actual filing date. if the return was filed by the deadline.
If the return was filed after the deadline HMRC must give notice by the quarter day following the first anniversary of the actual filing date.
Penalties for offshore non compliance
There may be increased penalties for offshore non compliance due to the extra time and costs associated with investigating
There is an additional penalty where there is a relevant offshore asset move intended to prevent or delay HMRC from discovering the potential loss of revenue
Penalties may be imposed on those who enable offshore non compliance
Appeals must first be made to X. A taxpayer may be offered or ask for X whereby X.
If there is no internal review or taxpaye ris not happy with the result they may
HMRC.
An internal review
Objective HMRC review officer not previously connected with the case.
take the case to the Tax Tribunal
