Week 6

Cards (16)

  • Deadlines for tax return​
    • 31 January (online) following the end of tax year​
    For 2023-234 it will be 31 January 2025​
    You have almost 10 months to complete tax return​​
  • penalties for late submission of tax return​
    • 0-3 months late = £100 penalty ​
  • penalties for late submission of tax return​​
    • 3 months  - up = previous penalty plus £10 per day up to £900
  • penalties for late submission of tax return​
    • 6 months – up = previous penalties plus greater of £300 and 5% tax due ​
  • penalties for late submission of tax return​​
    • 12 months  - up = previous penalties plus further £300 or 5% tax due​
  • penalties for late submission of tax return​​
    • deliberately withheld information from HMRC then the 5% becomes 70%​
  • penalties for late submission of tax return​
    • deliberately and concealed withheld information from HMRC then the 5% becomes 100%​
  • Self Assessment Tax Returns: requirement to notify chargeability​ Taxpayers who do not receive a tax return are required to notify chargeability to income tax or capital gains tax.​
    The time limit for notifying chargeability is six months from the end of the tax year in which the tax liability arises. Notification must be received on or before 5 October.​
  • Self Assessment Tax Returns: requirement to notify chargeability
    ​The taxpayer is liable to a financial penalty if notification is not made within the six-month time limit. The maximum penalty is the net amount of tax due, but unpaid, at 31 January following the tax year in which the liability arises.​
  • balancing payments penalties​
    Your bill includes the tax you owe for the last tax year. This is called a 'balancing payment' on your bill. If this is more than £1,000, your bill will usually include an additional payment towards next year's bill (known as a 'payment on account’).​
  • balancing payments penalties​​
    • 30 days late        - 5% of tax due​
    • 6 months late   - Further 5% of tax due​
    • 12 months late - Further 5% of tax due​
    • Plus interest  on any late payment of any balance​
  • ‘Payments on account’ are advance payments towards your tax bill (including Class 4 National Insurance if you’re self-employed).​
  • Payments on Account
    • You have to make 2 payments on account every year unless:​
    • your last Self Assessment tax bill was less than £1,000​
    • you’ve already paid more than 80% of all the tax you owe, for example through your tax code or because your bank has already deducted interest on your savings​
    • Each payment is half your previous year’s tax bill. Payments are usually due by midnight on 31 January and 31 July.​
  • Interest on overdue POA’s, balancing payments and penalties is calculated as follows:​
    1. POA’s and balancing payments, interest run from due date to the date when is paid.​
    2. Interest on a penalty runs from the due date of payment for that penalty (generally 30 days from its imposition).​
    3. Interest is calculated on a daily basis at the official Bank of England rate plus 2.5%​
  • Payments on account​
    • Jan 31 in the tax year                                          1st P O A​
    • July 31 following the end  of tax year                 2nd  P O A​
    Each of the above equals 50% of previous year’s tax liability​
    Any balance is  paid(refunded) on the   Jan 31  after the tax year end          ​
  • Payments on account​For 2022/23 what will the dates be:​
    • 31 January 2024Balancing payment (tax 2020/21)​
    • 31 January 2024 - 1st P O A (50% of tax paid for 2020/21)​
    • 31 July 2024 - 2nd  P O A (50% of tax paid for 2020/21)​