(A) Self-Assessment Flashcards
1
Q
An individual completing AN ANNUAL TAX RETURN on paper deadline?
A
31 October following the end of the tax year
2
Q
An individual completing AN ANNUAL TAX RETURN electronically?
A
31 January following the end of the tax year
3
Q
When must new sources of income or gains be notified to HMRC?
A
5 October, six months of the end of the tax year
4
Q
When is the deadline for a taxpayer to correct their return?
A
On or before 31 January 2026 if tax year was 2023-24 (12 months following the prescribed filling date (31 January 2025)
5
Q
When can HMRC correct obvious errors in taxpayer’s return?
A
Within 9 months of the date of receipt
6
Q
Persons conducting a trade or property letting business must retain all records must retain all records for?
A
Five years after the filing date (31 January 2030 for 2023-24 purposes)
7
Q
Persons not conducting a trade or property letting business must retain all records must retain all records for?
A
One year after the filing date (31 January 2026 for 2023-24 purposes)
8
Q
What happens on 31 January 2024 for payment of tax? (Year 2023-24)
A
Make first payment on account of 2023-24 income tax/Class 4 NIC
9
Q
What happens on 31 July 2024 for payment of tax? (Year 2023-24)
A
Make second payment on account of 2023-24 income tax/Class 4 NIC
10
Q
What happens on 31 October 2024 for payment of tax? (Year 2023-24)
A
Submit 2023-24 tax return if filing paper return
11
Q
What happens on 31 January 2025 for payment of tax? (Year 2023-24)
A
Make final balancing payment of 2023-24 income tax/Class 4 NIC
Make first payment on account of 2024-25 income tax/Class 4 NIC
Make only payment of 2023-24 CGT/Class 2 NIC (and balancing payment of CGT if residential property disposal)
12
Q
When are no payments on account required? (Less than £1000)
A
The income tax payable + Class 4 NIC liability for the preceding year is LESS THAN £1,000
13
Q
When are no payments on account required? (More than 80%)
A
More than 80% of the income tax payable + Class 4 NIC liability for the preceding year was settled by deduction at source (i.e. PAYE).
14
Q
What is the filing date for tax year 2023-24?
A
31 January 2025
15
Q
Failing to retain tax records maximum penalty?
A
£3000
16
Q
Balancing payments surcharges of income tax late penalty payments (30 days after)?
A
5% of the tax unpaid 30 days after the due date
17
Q
Balancing payments surcharges of income tax late penalty payments (6 months after)?
A
A further 5% of the tax unpaid more than six months after the due date
10% in total
18
Q
Balancing payments surcharges of income tax late penalty payments (12 months after)?
A
A further 5% of the tax unpaid more than 12 months after the due date
15% in total
19
Q
What are the quarter days?
A
31 January
30 April
31 July
31 October
20
Q
Notice of commencing (compliance check) an enquiry into a submitted tax return must be given?
A
12 months of the actual submission date (e.g. by 31 December 2025 for an individual’s return submitted on 31 December 2024)
21
Q
Notice of commencing (compliance check) an enquiry into a submitted tax return if a return is filed after the due submission date (i.e. it is filed late)?
A
The quarter day following the first anniversary of the actual filing date
22
Q
When is discovery assessment for four years?
A
If tax lost is not due to the careless or deliberate behaviour of the taxpayer
23
Q
When is discovery assessment for six years?
A
If tax lost is due to the careless behaviour of the taxpayer
24
Q
When is discovery assessment for twenty years?
A
If tax lost is due to deliberate understatement or concealment (i.e. fraud) by the taxpayer.
25
Deliberate and concealed maximum?
100%
26
Deliberate and concealed minimum (with unprompted disclosure by taxpayer)?
30%
27
Deliberate and concealed minimum (with prompted disclosure by taxpayer)?
50%
28
Deliberate but not concealed maximum?
70%
29
Deliberate but not concealed minimum (with unprompted disclosure by taxpayer)?
20%
30
Deliberate but not concealed minimum (with prompted disclosure by taxpayer)?
35%
31
Careless maximum?
30%
32
Careless minimum
(with unprompted disclosure by taxpayer)?
0%
33
Careless minimum (with prompted disclosure by taxpayer)
15%
34
What must taxpayer do within 30 days from the receipt of the statutory review offer?
Accept the offer of a statutory review
Appeal directly to an appeal tribunal
35
When must written notice of appeal be given?
Within 30 days of the assessment or amendment being issued.
36
HMRC must state its view of the disputed matter (HMRC statutory review process)
Within 30 days of the taxpayer's request
37
When HMRC has offered the review (HMRC statutory review process)
The taxpayer must accept the offer (in writing) within 30 days
38
When must HMRC conclude the review (HMRC statutory review process)
Within 45 days
39
What can happen within 30 days of completion of an HMRC statutory review (or the time limit for the review process having expired)?
The taxpayer may appeal to the tax tribunal
40
What is paper track?
Simple cases (e.g. an appeal against a fixed penalty) are settled by exchange of documents without any formal hearing.
41
What is basic track?
Case resolved by exchange of documents followed by a formal hearing
42
What is standard track?
Case resolved as for Basic Track, but procedure is more detailed and formal.
43
What is complex track?
Resolved as for Basic Track, but cases typically involve complex technical/legal principles or large sums of money.
44
When must a company notify HMRC of its first accounting period?
Within three months of when it started trade
45
Corporation tax return submitted for 31 March 2024?
31 March 2025
46
Calculate error for maximum penalty for carelessness (trading income)?
Trading income * (income tax % + NIC %) * penalty %
47
Official rate of interest?
2.25%
48
Rate of interest on underpaid tax?
6.5%
49
Rate of interest on overpaid tax?
3%
50
What is the filing date for income tax (2023-24)?
31 January 2025
51
What is the time limit to correct an income tax return (31 january 2025)?
12 months after the prescribed filing date
52
When can an amendment be made for a tax return?
Within 12 months of the prescribed filing date (31 January)
53
When can HMRC initiate a compliance check be made for a tax return?
Within 12 months of the actual filing date
54
Relevant amount for payment on account for income tax and NIC?
Total amount of income tax charged + NIC - tax deducted at source on company loan stock/ (2022/23 figures are used for 2024/24)
55
WHat does "more than 80% of tax deducted at source" mean?
PAYE in proportion of income tax liability
56
What is and isn't included when determining the payment on account?
Included: Income tax liability and class 4 NIC
Not included: Capital gains tax liability
57
When is the balancing payment in respect of her tax liability for the tax year 2022-23 due?
31 January 2024
58
Compliance vs amendment?
Amendment - prescribed filing date
Compliance - actual filing date
59
When is a determination done?
If notice has been served on a taxpayer to submit a return but said return is not submitted by the filing date
60
Maximum penalty for the daily penalties?
90 days * £10 = £900
61
When must a company notify HMRC of it's first accounting period?
Within 3 months of trading
62
When current year tax payable is less than previous year (calculating tax payable)?
Use current year for payments on account rather than the previous year
63
PAYE monthly penalty for number of employees 1 to 9?
£100
64
PAYE monthly penalty for number of employees 10 to 49?
£200
65
PAYE monthly penalty for number of employees 50 to 249?
£300
66
PAYE monthly penalty for number of employees 250+?
£400
67
Less than 16 days in UK
Previously Resident: Automatically not resident
Not Previously Resident: Automatically not resident
68
16 days to 45 days in UK
Previously Resident: Resident if 4 UK ties (or more)
Not Previously Resident: Automatically not resident
69
46 days to 90 days in UK?
Previously Resident: Resident if 3 UK ties (or more)
Not Previously Resident: if 4 UK ties (or more)
70
91 days to 120 days in UK?
Previously Resident: Resident if 2 UK ties (or more)
Not Previously Resident: if 3 UK ties (or more)
71
121 days to 182 days in UK?
Previously Resident: Resident if 1 UK ties (or more)
Not Previously Resident: if 2 UK ties (or more)
72
183+ days in UK?
Automatically resident
73
Sufficient ties test (Family)
Family tie
74
Sufficient ties test (Accommodation)
Accommodation tie
75
Sufficient ties test (Work)
Substantive work in the UK (40 or more days at any time in the tax year)
76
Sufficient ties test (90 days)
Spent more than 90 days in the UK in either of the previous two tax years
77
Sufficient ties test (Country)
Spending more days in the UK than in any other country in the tax year. Tie only relevant to a person who is UK resident in any of three previous years
78
Automatic UK tests (183 days)
Spending 183 days or more in the UK during the tax year
79
Automatic UK tests (home)
Individual’s only home is in the UK
80
Automatic UK tests (working)
Working full-time in the UK for any period of at least 365 days
81
Automatic overseas tests (16 days)
UK resident in any of the previous three tax years and fewer than 16 days are spent in the UK
82
Automatic overseas tests (not UK resident)
Individual was not UK resident in any of the previous three tax years and fewer than 46 days are spent in the UK
83
Automatic overseas tests (working)
Individual is working full-time overseas with no significant breaks, with fewer than 91 days spent in the UK and fewer than 31 working days in the UK
84
When is inheritance tax due on CLTs?
30 April following end of tax year
85
When is inheritance tax due on death estate?
Six months from the end of the month of death, or on delivery of the estate accounts to HMRC if earlier
86
When is inheritance tax due on a gift?
Later of:
30 April
6 months from the end of the month in which the gift is made
87
When are payment on accounts not required for 2023-24?
If relevant amount in 2023/24 did not exceed £1000
88
Can taxpayers dispute a dtermination?
NO
89
An amendment?
Make an amendment within 12 months of the prescribed filing date
90
A compliance check?
Can initiate a compliance check within 12 months of the actual filing date
91
What taxes are relevant in a payment on account?
Income tax and Class 4 NIC
92
Penalty for late paid tax for balancing payment and CGT (on or before penalty date)?
0%
93
Self-assessment late-filing tax returns penalty (0-3 months)
£100
94
Self-assessment tax returns late-filing penalty (3-6 months)
£100
£10 per day (max 90 days)
95
Self-assessment tax returns late-filing penalty (6-12 months)
£100
£10 per day (max 90 days)
Greater of 5% of unpaid tax and £300
96
Self-assessment tax returns late-filing penalty (12+ months)
£100
£10 per day (max 90 days)
Greater of: 5% of unpaid tax and £300
Greater of: % on unpaid tax conduct based and £300
97
Alternative filing deadline to 31 January 2025?
Three months from the issue of a notice to file.
98
Calculate payment on account for 31 July 2024?
(Class 4 NIC + Income tax liability) / 2
99
Calculate balancing payment?
(Class 4 NIC + Income tax liability + Class 2 NIC + capital gains) - ((Class 4 NIC + Income tax liability) / 2)
100
Notification of a compliance check?
Within 12 months of the actual filing date
101
When does the £5000 exemption happen?
Gift given by a parent on the occasion of a wedding
102
When does the £2500 exemption happen?
Gift given by a linear ancestor on the occasion of a wedding
103
When does the £1000 exemption happen?
Gift given by any other person on the occasion of a wedding
104
Who is responsible for paying additional inheritance tax arising from the gift made to the trust as a result of Percy's death?
The trustees
105
When is inheritance tax due on a gift when someone is dead?
By 6 months from end of month of death. Tax is payable by trustees
106
Available NRB on death estate calculation?
£325000 + Any transferred NRB from partner - lifetime transfers in seven years before death
107
Retention period for employees?
31 January 2026
108
Retention period for self-employed and sole traders?
31 January 2030
109
Settlement of VAT liability of annual accounting period (nine monthly)
Nine monthly payments on account (each being 10% VAT due for the previous 12 months)
Starting at the end of 4th month of current annual accounting period.
110
Settlement of VAT liability of annual accounting period (balancing payment)
A balancing payment of the remaining sum, two months after the end of the current annual accounting period.
111
When is output VAT available in cash accounting?
Not payable until the customers have settled their invoices.
112
When is input VAT recoverable in cash accounting?
Until suppliers have been paid
113
Flat rate scheme association?
Annual accounting scheme, not cash accounting scheme
114
When do VAT invoices only need to be issued in flat rate scheme?
To customers who are VAT registered
115
Relief and flat rate scheme?
No relief is given for input VAT suffered
116
Can VAT be claimed on a car where there's been private use?
NO
117
From what date was Richard required to be compulsorily registered for VAT?
First day of the second month
118
From what date was Richard required to notify HMRC?
Within 30 days
119
Flat rate scheme?
(Sales - exempt) * flat rate %
120
Can input VAT be claimed when using flat rate scheme?
No
121
What if a partnership leaves flat rate scheme, would it be unable to rejoin for at least 12 months?
Yes
122
Irrecoverable input VAT (new car leased)
New car is leased and also used partly for private purposes, 50% of the input VAT on the lease charge is irrecoverable
123
Irrecoverable input VAT (value of goods or services)
Value of goods or services withdrawn from the business for non-business purposes unless output VAT is accounted for on the private use
124
Irrecoverable input VAT (entertaining)
Entertaining, unless for staff or overseas customers
125
Goods acquired less than four years? (Input VAT claim)
Input VAT can be claimed
126
Services acquired less than six months? (Input VAT claim)
Input VAT can be claimed
127
Scale charge (input or output VAT)?
Output VAT
128
Can input VAT be reclaimed on a second hand container lorry?
YES
129
What is a substantial trader?
VAT liability less than 12 months exceeds £2.3 million
130
If VAT liability for quarter is £680000 and payment on account is £250000 for quarter ended 31 December 2023? (30 November 2023)
Payment on account of £250000
131
If VAT liability for quarter is £680000 and payment on account is £250000 for quarter ended 31 December 2023? (31 December 2023)
Payment on account of £250000
132
If VAT liability for quarter is £680000 and payment on account is £250000 for quarter ended 31 December 2023? (31 January 2024)
Balancing payment £680000 - £250000 - £250000 = £180000 with submission of VAT quarter
133
What quarter can impaired VAT be reclaimed if due date is 10 October 2023?
30 June 2024, as this is after 6 months outstanding
134
Time limit to reclaim overpaid VAT?
Four years
135
Tax point determines what?
The VAT period in which output tax must be accounted for and credit for input tax will be allowed
136
VAT invoices and flat rate scheme (issuing invoices)?
Businesses using the scheme must issue VAT invoices to their VAT registered customers
137
Businessses using flat rate scheme and input tax?
They cannot reclaim any input VAT suffered
138
Cash accounting scheme advantage on credit sales?
Output VAT on 10% of credit sales will be accounted for up to 1 month later than at present
139
Notification of deregistration if ceases trading on 31 March 2024?
30 April 2024
140
Actual deregistration if ceases trading on 31 March 2024?
31 March 2024
141
If business is sold as a going concern (advantage)
No output VAT will be payable in respect of the sale of the business
142
Is a penalty point for VAT incurred on filing or payment?
Filing
143
What impairment loss is included in input VAT?
If it's more than 6 months
144
When are fees included in input VAT?
If it is 6 or less months
145
When are goods included in input VAT?
If it 4 years or less
146
Can repairing the exterior of the company's office building be recovered input VAT?
Yes
147
Can extending the office building to create a new reception area be recovered input VAT?
Yes
148
VAT on cessation for non-current assets?
What is still owned (excluding cars)
149
Annual accounting scheme advantage (administration)?
Reduced administration
150
Annual accounting scheme advantage (payments on account)?
Payments on account based on previous year's VAT liability will improve budgeting and cash flow if business is expanding
151
Postponed accounting effect?
Input and output VAT on imports are the same
152
An individual appealing against a penalty for late registration for VAT?
Must appeal directly to the tribunal
153
Is business asset disposal relief and gift holdover relief available on disposal of shares?
NO
154
Who can apply for cash accounting scheme?
Turnover exclusive of VAT does not exceed £1.35 million
155
When does cash accounting scheme cease?
When turnover exceeds £1.6 million
156
When can trader join cash accounting scheme?
A trader can join only if all returns and VAT payments are up-to-date
157
When can trader join annual accounting scheme?
Turnover exclusive of VAT does not exceed £1.35 million
158
Requirements for annual accounting scheme?
Up to date with VAT payments
159
Returns in annual accounting?
Only 1 return per year but POA throughout the year
160
When does POA for annual accounting start?
End of fourth month of the year. Done monthly after that
161
When are balance and return due for annual accounting?
Two months after year end
162
When can flat rate scheme be used?
If VAT exclusive turnover for next 12 months not expected to exceed £150000
163
Input VAT and flat rate scheme?
Is not recovered
164
When must flat rate scheme be left?
If VAT inclusive turnover for next 12 months exceeds £230000
165
Advantage of annual accounting (return)
Only one VAT return each year
166
Advantage of annual accounting (cash flow)
Manage cash flow more accurately
167
Advantage of annual accounting (quarterly)
Avoids quarterly calculations for input tax recovery
168
Disadvantage of annual accounting (monitor)
Monitor future taxable supplies to ensure turnover is not exceeded
169
Disadvantage of annual accounting (previous year)
Payments based on previous year's turnover may not reflect current year turnover
170
Advantage of cash accounting scheme (cash flow)
It improves cash flow where customers are late payers
171
Advantage of cash accounting scheme (automatic)
It gives automatic relief for impairment losses
172
Advantage of cash accounting scheme (annual)
Can be used along with the annual accounting scheme
173
Advantage of flat rate scheme (detailed records)
Eliminates the need to keep detailed records of purchases and sales
174
Disadvantage of flat rate scheme (input VAT)
Not be beneficial for businesses with large amounts of input VAT to recover
175
When can company leave quarterly scheme?
VAT liabiltiy falls below £1.8 million
176
Can annual accounting scheme and cash accounting scheme be used together?
Yes
177
if date of deposit was before the basic tax point (date of despatch). What is the actual tax point?
Actual tax point is the date the deposit was paid
178
As an invoice was issued within 14 days of the basic tax point. What is the actual tax point?
The date of the invoice
179
When default interest not charged?
Where voluntary disclosure can be made by entering the underpayment on the next VAT return
180
When must BADR relief be claimed?
By 31 January 2026
181
When are chattels exempt from CGT?
If they are wasting assets
182
Spouse exemption in an estate?
Is deducted to get the chargeable estate
183
Does goodwill qualify for rollover relief?
NO (for companies)
184
Notice of chargeability to capital gains tax (date)?
5 October 2024
185
Business asset disposal relief lifetime limit?
£1 million
186
What is deducted in nil rate band at Stage 1?
CLTs not PETs
187
What is deducted in nil rate band at Stage 2?
CLTs and PETs
188
When is RNRB used?
Died on or after 6 April 2017
Passes to direct descendants
189
Annual allowance?
£40000
190
Income limit for annual allowances?
£240000
191
What percentage of pension funds can be withdrawn as a tax-free lump sum?
25%
192
What percentage of pension funds if excess value is taken as a lump sum?
55%
193
Sale of residential property due date?
60 days
194
Is indexation included in consideration received table?
NO, is done separately ina share pool
195
Future VAT liability exceeding £85000 (registeration and notification)
Register: 1st day of same month
Notification: End of first month
196
WDA on a disposed asset in capital allowances?
No WDA is claimed
197
Relief on impairment losses in VAT is determined by?
The payment due date
198
When property owned more than six years?
Use market value
199
In asset and subsequent working. should I use figure when purchased or when first provided?
First provided
200
File VAT return (annual accounting scheme)
Return due 2 months after the end of the accounting period
201
Pay VAT liability (annual accounting scheme)
Payment due within 2 months of month 12
202
Payments on account for annual accounting scheme?
10% of previous year VAT liability. Done from months 4 to 12
203
Insurance on property income (cash basis vs accruals)?
Cash basis: Whole
Accruals basis: TIme-apportioned
204
When is payment on account not required?
When relevant amount is less than £1000
205
SLA when sold (WDA or no WDA)?
No WDA
206
When there's cessation (WDA or no WDA)?
No WDA
207
Are earnings class 1 or class 1a?
Class 1
208
If question says trader has PAID a premium for granting a short lease?
Use the division working when put into the computation (lease premiums)
209
How does director's renumeration interact with trading profit?
It is deducted
210
Where are parternship profits included in the computation?
After qualifying interest but before personal allowance
211
What occupational contribution is deducted from income?
The one made by Percy, not the company
212
Carry forward relief (for individual)?
Only available against trading income
213
When will bonus be treated as received?
Earlier of date of payment or date of entitlement
214
Time relief for terminal loss relief?
5 April 2028
215
What happens with exempt employment income?
Not added to the salary
216
Time limit for claims against total income?
31 January 2026
217
When is there NIC on a car?
For company, not the individual
218
What NIC does a partner have to pay?
Class 4 and class 2
219
When is fuel benefit charged?
When an employer provides free or subsidised fuel for private use of a company car. The amount is £27800
220
Are dividends relevant in corporation tax?
NO
221
Redecorating a room in MD's house (excluded or included in input VAT?
Excluded
222
When there is some private use on a leased car (VAT calculation)
Cost * private use * 20%
223
When cost of original shareholding is passed on to new shareholding in a gift (in a chargeable gain)?
Original cost * (gift shares/Original shares)
224
When loss relief says as soon as possible?
Relief for the early years
225
When does interest for corporation tax run from (the 6.5% calculation)?
1 October 2024
226
When business is run as a sole trader and renumeration?
There are no gross director's renumerations
227
Balancing payment that's over six months late and where the amount is £2600?
1 month late: £2600 * 5%
6 month late: £2600 * 5%
228
Can trading incoem loss be used against all income when brought forward (for a company)?
YES
229
The choices in a loss relief for a company?
Carry back
Current year
Carry forward
230
Formula for gift holdover?
APOC
231
What does a new delviery van qualify for in capital allowances?
AIA
232
Leasehold premium division (added or subtracted in computation)?
Subtracted
233
What is the penalty for when four penalty points are reached in VAT filing penalties?
£200
234
How long must VAT invoices be retained for?
Six years
235
When is interest for income tax start date?
31 January 2025
