PT11 Intro to Self Assessment Flashcards
Deadline for notification of chargeability to income tax…
Six months after end of tax year = 5 October
Miss the 5 October for notification of chargeability deadline penalties:
Book 2 of the legislation, highlighted.
When might increased percentage penalties apply?
If the error relates to an offshore matter or offshore transfer
Deadline for a paper return
Later of:
* 31 October following tax year
* Three months after notice to file was issued
(two months if HMRC to calculate tax)
Taxpayer submits electronic return
online = ‘normal filing date’
Later of:
* 31 January following tax year
* Three months after notice to file was issued
Taxpayers with simple tax affairs can …
fill in a short tax return which has no self-assessment.
Penalties for late filing:
Book 2 of the legislation, highlighted.
Increased penalties apply if the withholding of information after more than 12 months is deliberate or deliberate and concealed.
Amendment / correction of return deadlines
HMRC:
Taxpayer:
Can amend errors within nine months of receiving return
Can amend return within 12 months of normal filing date
Enquiries Made by HMRC into a self-assessment return. ‘Enquiry notice’ must be given to the taxpayer by…
- First anniversary of actual submission date; or
- If return filed after normal filing date, the quarter day
following the first anniversary of the actual filing date
Calendar quarters are 30 April, 31 July, 31 October and 31 January
Record keeping time limits
* Sole trader, partner, letting property
* Anyone else
Five years from 31 January following tax year
One year from 31 January following tax year
Penalties for failure to keep proper records
Max penalty £3,000 per failure
Provisional figures
Should be used if taxpayer has insufficient information to prepare the return
Appeals…
If a taxpayer disagrees with a decision made by HMRC, they can challenge the decision by appealing.
Notices of appeal must be given in writing within 30 days of the amendment or assessment etc as appropriate. The notice should give the grounds for the appeal.
Appeals are made in the first instance to HMRC.
If an appeal cannot be settled by agreement, HMRC may offer a review. if a review is not offered, the taxpayer can either ask HMRC to review their decision or ask the Tribunal to consider the appeal.
The Tribunal is an independent legal body which consists of independently appointed expert tax judges and/or panel members.
PENALTIES FOR INCORRECT RETURNS
Book 2 of the legislation, highlighted.
Increased percentages may apply if the error relates to an offshore matter or offshore
transfer.
Simple assessments…
HMRC can make an assessment of an individual’s tax liability without the individual having
to file a tax return.
The assessment will show the amount payable
