{ "@context": "https://schema.org", "@type": "Organization", "name": "Brainscape", "url": "https://www.brainscape.com/", "logo": "https://www.brainscape.com/pks/images/cms/public-views/shared/Brainscape-logo-c4e172b280b4616f7fda.svg", "sameAs": [ "https://www.facebook.com/Brainscape", "https://x.com/brainscape", "https://www.linkedin.com/company/brainscape", "https://www.instagram.com/brainscape/", "https://www.tiktok.com/@brainscapeu", "https://www.pinterest.com/brainscape/", "https://www.youtube.com/@BrainscapeNY" ], "contactPoint": { "@type": "ContactPoint", "telephone": "(929) 334-4005", "contactType": "customer service", "availableLanguage": ["English"] }, "founder": { "@type": "Person", "name": "Andrew Cohen" }, "description": "Brainscape’s spaced repetition system is proven to DOUBLE learning results! Find, make, and study flashcards online or in our mobile app. Serious learners only.", "address": { "@type": "PostalAddress", "streetAddress": "159 W 25th St, Ste 517", "addressLocality": "New York", "addressRegion": "NY", "postalCode": "10001", "addressCountry": "USA" } }

UK tax systems Flashcards

(7 cards)

1
Q

Types of tax - who is it relating to (suffered)

Income tax
National insurance
Capital Gains 
Inheritance tax 
Corporation tax
VAT
A

Income tax - employees, sole traders, partners in a partnership, unemployed, retired

National insurance - Employees, self-employed, employers

Capital Gains - Individuals

Inheritance tax - Individuals

Corporation tax - Companies

VAT - Consumer, collected by businesses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Indirect v direct tax

A

Indirect - when tax is collected by an intermediary (like VAT on purchases)

Direct - collected from you by HMRC

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Accountant responsibility

A

Responsibility of an accountant who learns of a material error or omission in a clients tax return, or the failure to file, to advise the client and recommend disclosure to HMRC.

If client fails to correct error the accountant must: cease to act, inform HMRC that they no longer act (not of why they left), make a money laundering report to the MLRO (internally). The MLRO must then decide if that should go to the national crime agency

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Dishonest conduct of tax agent

A

Civil penalty of up to £50K
If it exceeds £5K, HMRC can publish details of agent
With agreement of the Tax Tribunal, HMRC can access the working papers of an agent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Residence

Automatic non-UK resident during the year

A

In the UK for less than 16 days, or
46 days and not been resident during the 3 prior years, or
91 days of which fewer than 31 days were working in the UK and they work full time overseas

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Residence

Automatic UK resident during the year

A

In the UK for 183 days or more, or
Only home in the UK, or
Works full-time in the UK and more than 75% of working days are in the UK

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Residence

Sufficient test

A

Only if the automatic test are not applicable

Amount of ties needed is from table given in the exam (prior resident = within the last 3 years)

Ties:
Close family in the UK (spouse, minor child)
UK accommodation (spends at least 1 night a year)
Substantive work (3 hours or more on 40 or more days in the year)
Being in the UK for me than 90 days during either or both of the 2 prior tax years

If leaving 1 further tie:
Spending more time in the UK than in any other country during the tax year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly