CH 10 - Self-Assessment - Furtehr Aspects

Question 1

When payment on account for SA are not required?

Answer 1

where either:
a. the tax due for the previous year is less than £1,000; or
b. more than 80% of the tax liability is collected at source.

if taxpayer belives of lower PoA, they can claim to reduce them.

Question 2

When HMRC will issue ‘repayment interest’?

Answer 2

If tax is overpaid, repayment interest will be added to the repayment received from HMRC.
Repayment interest runs from later of;
- the date of payment, or
- the due date

The interest received is tax free.

Question 3

How repayments are identified with tax paid?

Answer 3

Repayments are identified with tax paid in the following order:
* a. balancing payment ; then
* b. excess is equally spread in respect of the payments on account; then
* c. tax deducted at source PAYE (deemed to have been paid on 31 January following the tax year).

Repayment interest runs from later of;
- the date of payment, or
- the due date

Question 4

What one of conditions must be met
for HMRC to issue
discovery assessment

Answer 4

1. The loss of tax was brought about carelessly or deliberately by the taxpayer.
2. When the officer ceased to be entitled to give a notice of enquiry to the taxpayer under TMA 1970, s.9A (usually 12 months from the due date for filing), he could not have been reasonably aware, on the basis of information made available to him, that the return was incorrect or incomplete.

Question 5

When Discovery Assessment can’t be made by HMRC?

Answer 5

a discovery cannot be made if extensive disclosure has been made which clearly notifies HMRC of an actual insufficiency.