Self assessment

Question 1

What do you claim on your self assessment? (4)

Answer 1

Income tax liabilities
High income Child benefit Charge
Pensions annual allowance charge
Gains for the tax year

Question 2

Why do some people not have to complete a self assessment?

Answer 2

Savings and income fall within the PSA or dividend allowance and their earnings are subject to PAYE

Question 3

What is the deadline for informing HMRC that if you need to complete a self assessment but you have not yet received any notification to do so?

Answer 3

Must inform them by 5th October following the end of the tax year

Question 4

What is the deadline for a paper submission of self assessment?

Answer 4

31st October following the end of the tax year
ie tax year 2015/2016 would be the 31st October 2017
(HMRC have time to calculate the tax by due deadline period of 31st January 2018.

Question 5

What is the deadline for online self assessment submission?

Answer 5

By 31st January following the end of the tax year.

ie. tax year 2015/2016 would be 31st Jan 2018.

Question 6

What are the circumstances when an employee can ask for any underpayment to be collected by PAYE?

Answer 6

When it is under £3000

Question 7

When can any amendments be done?

Answer 7

From the period ending 12 months after 31st January following the tax year

Question 8

What do payments on account refer to which payments? (4)

Answer 8

Income tax
Class 2 Nics
Class 4 Nics
Higher income child benefit tax charge
(PAyments in 2016/2017 would be 50% of the 2015/2016 tax year)

Question 9

Which 2 payments are not allowed on payments on account and must be paid for as a lump sum?

Answer 9

CGT

Student loan repayments

Question 10

When would a tax payer not be required to pay payments on account?

Answer 10

Where:

• Income tax and class 4 Nics total £1000 or less
• Amount payable by self assessment in the previous year was 20% or less of the total of income tax and Nics for the previous year

Question 11

When is the first payment on account due?

Answer 11

On the 31st January in the tax year concerned

Question 12

When is the second payment on account due?

Answer 12

On the 31st July after the end of the tax year

Question 13

When is the balancing payment due?

Answer 13

On the 31st January after the tax year

Question 14

What is the balancing payment?

Answer 14

This is the difference between the total tax/NICs paid in the 2 payments on account and the actual amount due. It might be an extra payment or it might be a reclaim of tax from HMRC

Question 15

When are CGT payments and student loans due?

Answer 15

On 31st January after the tax year end

Question 16

What can a tax payer do if they think that the profits will be lower than in previous tax years?

Answer 16

Can apply to HMRC for a reduction on either one or both of their payments on account if they believe the next profits will be lower
However if this transpires not to be the case then the revenue may charge interest if the reductions were unjustified

Question 17

What is the current interest rate charge applied to any late payment of income tax, NIcs or CGT?

Answer 17

3% is the current interest rate charge

Charged from the day it was due and can be on a payment on account or balancing payment

Question 18

What is the penalty for not submitting your return by the deadline?

Answer 18

£100 fine

Question 19

After the £100 fine for a late return of self assessment, what are the charges after that?

Answer 19

*If more than 3 months late, £10 daily penalty up to a maximum of £900
*If more than 6 months late, penalty of the greater of 5% of the tax due and £300
(This is repeated if the return is outstanding over 12 months)
*There is also a 5% surcharge on any unpaid tax after 28 days from due date, with an additional 5% if still unpaid after 6 months from the due date and again after 12 months of the due date

Question 20

What are the timescales that HMRC have if they wish to carry out an enquiry on a tax return?

Answer 20

12 months from the submission of the return

If the tax payer does not agree with the decision then there is a right of appeal to the Tribunal service