tax chapter 13 Flashcards
causes of penalties
failure to notify HMRC of changeability failure to submit a return late return incorrect return late payment failure to keep proper records
what is the common penalty regime
introduced to bring more uniformity to penalty rules where taxpayer
- made error/inaccuracy in tax return
- filed a late return
- failed to notify HMRC of changeability to tax
how it Potential Loss Revenue calculated
calculated as a net loss to HMRC
range from 30% to 100%
what are time limits on corporation tax, income and capital gains tax and VAT
corporation tax - 6 yeards from the end of the accounting period
income and capital gains tax - business 5th anniversary of 31 January following the end of the tax year
or 1t anniversary of the 31st January following end of the tax year
VAT- 6 years
what does the PAYE form P11D mean
end of year recording details of benefits provided to employees
send HMRC and copy to the employee by 6 July following the end of the tax year
what does the PAYE form P60 mean
end of year form recording details of gross pay, tax deducted and NICs both employer and employee
supply to each employee by 31 May following the end of the tax year
what does the PAYE form P45 mean
particulars employee leaving recording tax code, gross pay to date, tax and NICs deducted
given employees for his own records
what does a full tax return involve
consists of a summary form, supplementary pages dealing with different types of income and gains and a tax calculation section
when does a short tax return apply
if they are employees (not directors), sole-traders with turnover less than VAT registration limit or pension
latest submission date is 31 October or three months after the issue of tax return
income tax and capital gains tax payment dates
the first payment on account; 31st January tax year
second payment on account; 31 July end of the tax year
–>amount is half of the income tax and class 4 NIC of the previous year
balancing payment; 31st january end of the tax year
when is payment son account not required
amount of tax paid in self-assessment in a previous year less than £1000 OR 20% of total tax liability
what are the rights to amend tax returns
HMRC errors of principle and arithmetic errors
taxpayer any reason
when is a full tax return submitted
within 12 months of the end of the period of account
must file online and support computations and accounts must be submitted using IXBRL
