administration of tax

Question 1

what are examples of careless inaccuracy?

Answer 1

• inaccurate books that are incomplete
• omitting occasional items of income and gains
• failing to check record is consistent
• making arithmetical errors

Question 2

what are examples of deliberate inaccuracies

Answer 2

• systematically paying wages without operating PAYE
• not keeping books or records at all
• including personal expenditure with business expenditure
• omitting significant amounts of income in relation to overall liability from a return

Question 3

what are examples of deliberate and concealed inaccuracies?

Answer 3

• creating false invoices
• backdating/post dating invoices
• altering invoices and other documents
• creating fictitious meetings
• destroying books so that they’re not available

Question 4

a penalty must be paid within how many days?

Answer 4

30 days

Question 5

what can an appeal be made against?

Answer 5

• the imposition of a penalty
• amount of a penalty
• decision not to suspend a penalty
• conditions set by HMRC in relation to suspension the of a penalty

Question 6

how long should corporate tax records be kept for?

Answer 6

6 years from end of accounting period

Question 7

how long should income and capital gains tax be kept for

Answer 7

• 5th anniversary of 31st January following end of tax year if in business
• 1st anniversary of 31st January following end of tax year if taxpayer not in business

Question 8

how long should VAT records be kept for?

Answer 8

6 years

Question 9

what is the maximum penalty for failure to keep records? also for VAT

Answer 9

£3,000 per tax year and for vat records £500

Question 10

who is a senior accounting officer and what do they do?

Answer 10

• overall responsibility for the companys accounting system

Question 11

when can an overpayment relief claim be made?

Answer 11

within 4 years of the end of the tax year to which the return relates

Question 12

when are payments of account for NICs not required?

Answer 12

The amount paid under self assessment in the previous year was less than:
- £1000
- 20% of total liability

Question 13

what is the interest for payment of account, balancing payment and penalties?

Answer 13

runs from due date of payment to the day payment is made. HMRC doesn’t count the actual dates

Question 14

what is the interest for additional payments due to amendment of self assessment?

Answer 14

runs from annual submission date to the day before payment is made

Question 15

is repayment interest exempt from income tax?

Answer 15

yes

Question 16

how long do companies have to notify HMRC about their first accounting period?

Answer 16

within 3 months of the start of the first accounting period