Self-Assessment (2) Flashcards
What does a common penalty regime apply to/
Incorrect self-assessment tax returns, corporation tax returns and misdeclarations on a VAT return
When are penalties behaviour related/
Based on PLR as a result of the error
If there is an understatement of tax?
This understatement will be the PLR
Where can penalties be reduced?
If taxpayer makes disclosure and are more generious if disclosure is unprompted
Penalties for deliberate and concealed?
Maximum penalty: 100%
Minimum penalty - unprompted: 30%
Minimum penality - prompted: 50%
Penalties for deliberate but not concealed?
Maximum penalty: 70%
Minimum penalty - unprompted: 20%
Minimum penality - prompted: 35%
Penalties for careless?
Maximum penalty: 30%
Minimum penalty - unprompted: 0%
Minimum penality - prompted: 15%
What is a self-assessment?
Calculation of amount of taxable income and gains after deducting reliefs and allowances
Calculation of income tax and CGT payable
What if taxpayer is filnig a paper return in self-assessment?
Make tax calculation on their return or ask HMRC to do so on their behalf
When must a paper relief be filed to HMRC in self-assessment?
On or before 31 October in year 2
If notice to file tax return is issued after 31 August in Year 2
if taxpayer is filing an electronic return in self-assessment?
Calculation of tax liability is made automatically when return is made online
When may taxpayer amemd their return for year 1?
Within 12 months after the filing date
if taxpayer was amending self-assessment when notice to file a return was issued after 31 October in year 2?
Last day of three month period starting with the issue
When may a return be amended by HMRC?
Correct any obvious error or omission in the return or anything else that an officer believes is incorrect
When can taxpayer object to the correction?
Must do so within 30 days of receiving notice of it
