Module 7 - Income Tax Administration

Question 1

An individual who has not received a notice to file a return is required to notify HMRC by what date and time frame?

What date do you have to pay by to avoid a fine?

Answer 1

Six months post the end of the fiscal year - 5th October.

A year past 31st Jan

Question 2

When do individuals have to keep tax records until?

Answer 2

5 years after 31 January following the fiscal year where the tax payer is in business and one year after 31 January the following fiscal year otherwise.

Question 3

If an error has resulted in tax over pay what is the time frame for a relief claim?

Answer 3

4 years from the end of the tax year.

Question 4

What is a discovery assessment?

Answer 4

An assessment where excess relief has been given as a result of omitted profits.

Question 5

What are payments of account and when do they have to be paid?

Answer 5

Tax payments calculated based on prior year and split in to three payments -

1. 31st Jan in the fiscal year
2. 31 July following end of fiscal year
3. Balancing payment 31st January following fiscal year end.

Question 6

When do class 2 NIC and CGT have to be paid?

Answer 6

31 Jan following fiscal year end

Question 7

When are payments on account not required?

Answer 7

When they fall below the de minimis amount of £1000 (each POA being £500)

Question 8

If an individual requests to have their POA reduced, but then end up under paying their tax what happens?

Answer 8

They pay interest on the amount they have under paid.