Topic 12 Flashcards
When is the tax year
6th April to 5th of April
What class NI does a self employed person pay
Class 4 through a system called self assessment they pay the flat rate class 2 contributions throughout the year
When do you pay paper tax returns
Midnight on the following 31 October
The final payment of tax due must be received by midnight on 31 January
When do you pay online tax returns
Midnight on the following 31 January
The final payment of tax due must be received by midnight on 31 January
What are the penalties of missing a tax return
From one day day to three months late fixed penalty of 100£
Three months late : 10£ for each following day up to 90 day maximum of 900£ as well as the fixed penalties above
Six to twelve months late 300£ or 5% of the tax due , whichever is higher as well as the penalties above
Twelve months late: in serious cases up to 100% of the tax due instead of the 300£ or 5 % penalty as well as the 1000£ penalties above
What does a p45 show
Tax code and PAYE reference number
National insurance number
Leaving date
Earning in the tax year so far
Income tax paid the tax year so far
What is a p45
An employer must issue to an employee when they stop working for them so that their new employer can calculate how much income tax and NI they need to deduct
What is a p60
An employer must issue a p60 at the end of every tax year to any employee who is working for them on 5 April p60 summarises the tax paid by the employer for the tax year that just ended
