12 Tax administration for individuals

Question 1

When is the tax return deadlines?

Answer 1

31st Oct, 31st Jan or three months after the issue of a tax return (latest)

Question 2

What is the filing date?

Answer 2

31st Jan

Question 3

What does a statement of account show?

Answer 3

Tax charges, charges of interest or penalties and any payments already made

Question 4

When do HMRC correct errors on a return?

Answer 4

Within 9 months

Question 5

When can the tax payer amend a return?

Answer 5

Within 12 months

Question 6

When is the 1617 amendment date?

Answer 6

31st Jan 19

Question 7

What can a tax payer do if they discover a error after the filing deadline?

Answer 7

Make a claim for overpayment relief

Question 8

What is the time limit for notifying HMRC of charge-ability?

Answer 8

5th October (6 months after)

Question 9

When can a determination be made?

Answer 9

Within three years of the filing date

Question 10

How long does records need to be kept if your a business?

Answer 10

Must keep all their records until five years after the 31 January filing date.

Question 11

What is the deadline for 1617 to keep records for?

Answer 11

31 Jan 2023

Question 12

When should you keep P60s, P11Ds and bank statements for?

Answer 12

12 months after the filing date, the date on which the compliance check is completed, or impossible to start a check

Question 13

When do you start making POA?

Answer 13

Tax liability is over £1,000

Question 14

What is the exemptions for having to do a POA?

Answer 14

If more than 80% of the income tax liability for the previous tax year was met by deduction of tax at source

Question 15

What are the POA for 1617?

Answer 15

Jan + July 17

Question 16

What are POA required for?

Answer 16

Income tax and class 4

Question 17

What are POA not required for?

Answer 17

Capital gains or class 2

Question 18

How is the relevant amount made up?

Answer 18

Total tax less paye

Question 19

What can interest arise in respect of?

Answer 19

POA, balancing payments, tax payable following an amendment

Question 20

How is interest charged?

Answer 20

Daily basis from the date the tax was due to the date of payment

Question 21

What are the penalties for paying late?

Answer 21

1 months - 5%
6 months - Additional 5%
12 months - Additional 5%

Question 22

What is the basic rule on claiming loss relief for earlier years?

Answer 22

The tax liability for the earlier year is not adjusted. Instead, the tax reduction resulting from the claim will be set off against the tax liability for the later year.

Question 23

How will HMRC tell you they are commencing a compliance check?

Answer 23

Written notice

Question 24

When must the written notice be issued by HMRC?

Answer 24

Within 12 months

Question 25

How many days does the tax payer have to appeal against a tax compliance check outcome?

Answer 25

30 days

Question 26

If a taxpayer is not satisfied with the outcome of a compliance check, what can they do?

Answer 26

Request another officer to review, and/or refer to a independent tax tribunal

Question 27

What are the two layers of the tax tribunal?

Answer 27

First tier and upper tribunal

Question 28

What is the tax tribunal?

Answer 28

An independent body where cases are heard by independently appointed tax judges and/or panel members.

Question 29

What does the first tier tribunal deal with?

Answer 29

Simple appeals, basic cases, standard cases and complex cases

Question 30

What does a higher tier do?

Answer 30

Mainly, but not exclusively, review and decide appeals from the First-tier Tribunal on a point of law. They will also deal with complex cases requiring detailed specialist knowledge and a formal hearing

Question 31

What is the percentages for potential loss revenue for genuine mistake?

Answer 31

No penalty

Question 32

What is the percentages for potential loss revenue for careless/failure to take reasonable care?

Answer 32

30% of revenue loss

Question 33

What is the percentages for potential loss revenue for deliberate but no concealment?

Answer 33

70% of revenue loss

Question 34

What is the percentages for potential loss revenue for deliberate with concealment?

Answer 34

100% of revenue loss

Question 35

How can the maximum penalty be reduced?

Answer 35

Taxpayer informs HMRC, co-operates with HMRC and larger reductions given for unprompted disclosure.

Question 36

Minimum penalties that vary based on?

Answer 36

1. Behaviour | 2. Whether prompted or unprompted

Question 37

An unprompted disclosure of a careless error can reduce the penalty to?

Answer 37

0%

Question 38

What is the penalty for late filing of the return after due date?

Answer 38

£100

Question 39

What is the penalty for late filing of the return after 3 months?

Answer 39

Daily penalties of £10 per day (maximum 90 days), in addition to £100 fixed penalty

Question 40

What is the penalty for late filing of the return after 6 months?

Answer 40

5% of tax due (minimum £300), | plus above penalties

Question 41

What is the penalty for late filing of the return after 12 months but not deliberate?

Answer 41

Additional 5% of tax due (minimum £300)

Question 42

What is the penalty for late filing of the return after 12 months but deliberate with no concealment?

Answer 42

70% of tax due | (minimum £300)

Question 43

What is the penalty for late filing of the return after 12 months but deliberate with concealment?

Answer 43

100% of tax due | (minimum £300)

Question 44

What is the penalty for fraud or negligence of reducing payments on account?

Answer 44

POA should less POA actually paid = Penalty

Question 45

What is the penalty for failure to keep and retain required records?

Answer 45

£3,000 per tax year

Question 46

What does an L code denote?

Answer 46

The letter L denotes that just the ordinary personal allowance has been given

Question 47

What does a K code denote?

Answer 47

This indicates that the deductions such as benefits

Question 48

What is the tax code calculation?

Answer 48

(Total allowances less total deductions) × 1/10

Question 49

What's the limit for paying PAYE quarterly?

Answer 49

£1,500

Question 50

What is RTI penalty for 1-9 employees?

Answer 50

£100

Question 51

What is RTI penalty for 10-49 employees?

Answer 51

£200

Question 52

What is RTI penalty for 50-249 employees?

Answer 52

£300

Question 53

What is RTI penalty for more than 250 employees?

Answer 53

£400

Question 54

What is the penalty for being 3 months late with RTI?

Answer 54

5% of the tax and NI due