Tax admin

Question 1

What are the dates for Discovery Assessment?

Answer 1

4 years from end of period (no careless behaviour)

6 years from end of period (for careless behaviour)

20 years from end of period (for deliberate behaviour)

Question 2

What are the relevant periods for income tax, CGT, corp tax, VAT?

Answer 2

o Tax year- income tax and CGT
o Accounting period- corp tax
o Quarter- VAT

Question 3

Taxpayer can appeal what and when?

Answer 3

o Anything doc related including discovery and VAT assessment.
o Within 30 days

Question 4

What are the dates surrounding amending tax returns?

Answer 4

o HMRC can correct within 9 months of filing date
o Taxpayer can amend within 12 months and claim over-payment relief within 4 years

Question 5

When does interest on late payments run for interest tax?

Answer 5

From due date to date of payment (number of days not incl due date or payment date)

Question 6

Describe when you can get charged penalty

Answer 6

o Inaccuracy in returns
o Failure to notify within 30 days

Question 7

Describe characteristics associated with penalties (inc careless, deliberate and concealed, deliberate and not concealed)

Answer 7

o Careless- failure to check and compare

o Deliberate but not concealed- paying wages without operating PAYE/NIC, excluding income

o Deliberate and concealed- false invoice, destroy evidence

Question 8

What is the van scale charge

Answer 8

o Private use= £3960
o Fuel private use= £757

Question 9

When is income tax and NIC paid to HMRC

Answer 9

14th day, i.e. 19th of every month.

22nd for electronic

Question 10

How do you calc PAYE codes?

Answer 10

o If allowances are more than deductions
Use total, remove last number, add L at end(M for receiving Marriage PA)

o If deductions greater than allowance
Use total, remove last digit, minus 1, add K at start

Question 11

What is the date of disposal

Answer 11

o When contract is made
o Or when conditions of contract met

Question 12

When is CGT due?

Answer 12

31 Jan after end of tax year

Question 13

When is P11D forms due?

Answer 13

6 July next year

Question 14

When are annual accounting returns made?

Answer 14

2 months of Y/E

Question 15

What are the retention periods for tax?

Answer 15

Income tax/CGT- 5 years from 31 Jan
Corporation tax - 6 years from end of period
VAT - 6 years

Income tax for personal records is one year from 31 Jan

Question 16

What is the formula for marginal relief in relation to augmented profits?

Answer 16

(U-A) x (TTP/A) x 3/200

U- £250,000

Question 17

Who pays payments on account accounts?

Answer 17

Self-employed on income tax and class 4 NICs

-Unless under £1000 liability for PY or less than 20% of total income and class 4 liability

Question 18

What are the rules for registration and submission for corporation tax for companies?

Answer 18

Register within 3 months of start of AP and submit return within 12 months of end of period

Question 19

What are the rules for notice of enquiry to return?

Answer 19

Generally 12 months from filing date if on time

If not on time, it is by quarter day after 12 month anniversary i.e. 31 Jan 30 April 31 July 31 October

Question 20

What are substantial traders and when are their payments due

Answer 20

VAT liability over £2.3m and pay 1/24 of PY in month 3 and 4

Question 21

When does balancing charge apply

Answer 21

if disposal higher than twdv bf

Question 22

when does trading income have -ve

Answer 22

when unsure of treatment. There will only be 0s no +ves