Tax Flashcards
Which employees come under the PAYE system?
Employees making more than 184 GBP/week
What are the PAYE filing requirements of employers?
Submit Full Payment Submission (FPS) on or before each payday
(money received by HMRC by 22nd of the month)
Generally, what is the latest date by which employee income tax withheld by an employer must be submitted to HMRC?
22nd of every month
When are self-assessment returns due?
Electronic returns: 31 Jan after tax year end
Paper returns: 31 October after tax year end
When are income taxes due?
First instalment: 31 January
Second instalment: 31 July
Balancing instalment: 31 January
(note this is payment and NOT filing return)
Who files tax for a partnership?
Nominated partner on behalf of the partnership to the HMRC (return is only informational)
(even though the partners pay income tax individually)
Which loans are included in qualifying loan interest?
- Capital contributions
- Loans to partnership
- Investment in trading co (small businesses)
- Loan taken by PR to pay IHT
Which instances are deemed occupation for private resident relief?
- last 9 months of ownership
- absence for any reason for up to 3 years
- time working overseas
- time working in the UK (max 4 years)
What is the CGT annual exemption amount?
12,300
In May 2020, a man opened a small woodworking shop near Manchester in which he sells hand-made furniture. Business has been brisk and it started turning a profit within its first month of operation. Now that he is trading, he has asked his solicitor when the first tax payment is due and what the deadline is for submission of his tax return for tax year 2020/21.
When was the man’s first tax payment due and what was the deadline for submission of his tax return for tax year 2020/21?
In the first year of trade, no payments are required.
Since trading started during tax year 2020/21, the man would have had to pay any tax owed on his trade income by 31 January 2022 and submit an online tax return by that same date
