SELF ASSESSMENT-INDIVIDUALS

FACTOR NOTIFICATION OF TAXABLE SOURCE OF INCOME DUE DATE 5 OCTOBER FOLLOWING THE END OF THE TAX YEAR THE SOURCE AROSE COMMENTS THE LEVEL OF PENALTY IS A % OF THE TAX UNPAID ON 31 JANUARY FOLLOWING THE END OF THE TAX YEAR AND DEPENDS ON THE BEHAVIOUR OF THE TAXPAYER PENALTIES GENUINE MISTAKE=NO PENALTY FAILURE TO TAKE REASONABLE CARE=30% SERIOUS OR DELIBERATE UNDERSTATEMENT=70% SERIOUS OR DELIBERATE UNDERSTATEMENT WITH CONCEALMENT=100% PENALTIES CAN BE REDUCED WHERE THE TAXPAYER MAKES FULL DISCLOSURE AND COOPERATES WITH HMRC TO ESTABLISH THE AMOUNT OF UNPAID TAX TAX RETURNS THE TAXPAYER HAS THE FOR 2010/11: 0-3 MONTHS LATE=100 CHOICE OF FILING A PAPER RETURN OR 31 OCTOBER 2011 FOR 3-6 MONTHS LATE=DAILY PENALTIES OF FILING PAPER RETURNS 10 PER DAY (MAX 90 DAYS) ELECTRONICALLY ONLINE. 6-12 MONTHS LATE =ADDITIONAL 5% OF 31 JANUARY 2012 FOR TAX DUE (MIN OF 300) ALL COMPLETED AND ELECTRONIC RETURNS SIGNED PAPER >12 MONTHS LATE= ADDITIONAL 5% OF RETURNS MUST BE THE 31 JANUARY TAX DUE (MIN OF 300) FILED BY THE LATER OF: FOLLOWING THE END OF 31 OCTOBER THE TAX YEAR IS KNOW AS 12 MONTHS LATE AND TAXPAYER IS FOLLOWING THE END THE FILING DATE WITHHOLDING INFORMATION BY OF THE TAX YEAR REGARDLESS OF WHETHER FAILING TO SUBMIT THE RETURN= OR 3 MONTHS AFTER THE RETURN IS FILED ON THE RETURN IS ISSUED. PAPER OR -WITHHOLDING IS DELIBERATE AND THIS IS ALSO THE ELECTRONICALLY. CONCEALED= 100% OF TAX DUE DEADLINE IF THE TAXPAYER WISHES THIS MUST BE -WITHHOLDING IS DELIBERATE BUT NOT HMRC TO CALCULATE DISTINGUISHED FROM THE CONCEALED= 70% OF TAX DUE THE TAX ON THEIR DATE ON WHICH THE BEHALF FOR PAPER RETURN IS FILED (KNOWN -IN EITHER CASE THE MINIMUM IS 300 RETURNS. AS THE ACTUAL FILING DATE) ALL ONLINE ELECTRONIC RETURNS MUST BE FILED BY THE LATER OF: 31 JANUARY FOLLOWING THE END OF THE TAX YEAR OR 3 MONTHS AFTER THE RETURN IS ISSUED TWO PAYMENTS ON POA ARE BASED ON ACCOUNT (POA) PREVIOUS YEARS TAX =31 JANUARY IN THE TAX PAYABLE BY SELF YEAR AND 31 JULY ASSESSMENT FOLLOWING THE END OF THE TAX YEAR BALANCING PAYMENT 31 JANUARY FOLLOWING THE END OF THE TAX YEAR (FILING DATE) INTEREST FOR ANY LATE PAYMENTS A PENALTY IF THE BALANCING PAYMENT (IT,NIC AND CGT) IS LATE: MORE THAN 1 MONTH LATE=5% OF TAX DUE MORE THAN 6 MONTHS LATE=ADDITIONAL 5% OF TAX DUE MORE THAN 12 MONTHS LATE= ADDITIONAL 5% OF TAX DUE HMRC HAVE THE DISCRETION TO REDUCE A PENALTY IN SPECIAL CIRCUMSTANCES CLAIMS INCLUDED IN THE TAX RETURN OR SEPARATE CLAIM IN WRITING CLAIM QUANTIFIED

PAYMENT DATES

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CLAIMS TO REDUCE BY 31 JANUARY PAYMENTS ON ACCOUNT FOLLOWING THE END OF (POA) THE TAX YEAR

INTEREST CHARGED WHERE AN EXCESSIVE CLAIM IS MADE TO REDUCE POA. -CHARGE IS BASED ON THE DIFFERENCE BETWEEN THE AMOUNTS ACTUALLY PAID AND AMOUNTS THAT SHOULD HAVE BEEN PAID THE AMOUNT THAT SHOULD HAVE BEEN PAID IS THE LOWER OF: -THE ORIGINAL POA BASED ON TAX PAYABLE BY SELF ASSESSMENT FOR THE PREVIOUS YEAR -50% OF THE FINAL INCOME TAX AND CLASS 4 NIC PAYABLE BY SELF ASSESSMENT FOR THE CURRENT YEAR IN ADDITION THERE MAY BE A PENALTY FOR FRAUD OR NEGLIGENCE ON CLAIMING REDUCED POA -PENALTY=DIFFERENCE BETWEEN THE POAs ACTUALLY PAID AND THE POAs IF CLAIMS NOT MADE

HMRC AMENDMENTS TO RETURN TAXPAYER AMENDMENTS TO RETURN ERROR OR MISTAKE CLAIM RECORDS KEPT

9 MONTHS FROM DATE RETURN IS SUBMITTED 12 MONTHS FROM FILING DATE WITHIN 4 YEARS FROM THE END OF THE TAX YEAR CONCERNED SELF EMPLOYED AND RENTAL BUSINESS= FIVE YEARS FROM THE FILING DATE OF THE TAX YEAR CONCERNED OTHER INDIVIDUALS= 1 YEAR FROM THE FILING DATE OF THE TAX YEAR CONCERNED

UP TO 3000 PER YEAR OF ASSESSMENT

HMRC ENQUIRIES

12 MONTHS FROM THE ACTUAL FILING DATE OF THE TAX YEAR CONCERNED

HMRC DETERMINATIONS 3 YEARS FROM THE SELF ASSESSMENT FILING DATE

DEADLINE IS EXTENDED IF A RETURN IS FILED LATE ( AFTER 31 JANUARY) OR AMENDED IE 12 MONTHS FROM THE END OF THE RELEVANT QUARTER IN WHICH THE RETURN IS SUBMITTED OR AMENDMENT MADE A DETERMINATION CANNOT BE APPEALED AGAINST THEY CAN ONLY BE REDUCED BY AN ACTUAL SUBMISSION OF THE TAX RETURN

HMRC DISCOVERY ASSESSMENTS

4 YEARS FROM THE END OF THE TAX YEAR CONCERNED, 6 YEARS IF THERE IS A CARELESS ERROR AND 20 YEARS IF THERE IS A DELIBERATE ERROR OR FAILURE TO NOTIFY CHARGEABILITY TO TAX

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PENALTIES FOR INCORRECT RETURNS

SUBMISSION OF AN INCORRECT TAX RETURN OR ACCOUNTS LEADING TO -UNDERSTATEMENT OF THE TAX LIABILITY -A FALSE OR INFLATED STATEMENT OF A LOSS -A FALSE OR INFLATED TAX REPAYMENT

THE LEVEL OF PENALTY IS A % OF THE TAX UNPAID AS A RESULT OF THE INACCURACY OR UNDER ASSESSMENT AND DEPENDS ON THE BEHAVIOUR OF THE TAXPAYER

GENUINE MISTAKE=NO PENALTY FAILURE TO TAKE REASONABLE CARE=30% SERIOUS OR DELIBERATE UNDERSTATEMENT=70% SERIOUS OR DELIBERATE UNDERSTATEMENT WITH CONCEALMENT=100% PENALTIES CAN BE REDUCED WHERE THE TAXPAYER MAKES FULL DISCLOSURE AND COOPERATES WITH HMRC TO ESTABLISH THE AMOUNT OF UNPAID TAX AVG MONTHLY PAYMENTS ARE <1500 QUARTERLY PAYMENTS CAN BE MADE EMPLOYERS WITH 250 OR MORE EMPLOYEES MUST MAKE THEIR MONTHLY PAYE PAYMENTS ELECTRONICALLY ON THE 22ND OF EACH MONTH INTEREST ON LATE PAYMENTS AND PENALTIES AS ABOVE

PAYE 19th OF THE MONTH

INCLUDES NIC

CAPITAL GAINS TAX

31 JANUARY FOLLOWING -NO PAYMENTS ON THE END OF THE TAX ACCOUNT YEAR OF DISPOSAL -INCLUDE DETAILS IN SELF ASSESSMENT TAX RETURN

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SELF ASSESSMENT-COMPANIES
FACTOR NOTIFICATION OF TAXABLE SOURCE OF INCOME DUE DATE 12 MONTHS FROM THE END OF THE ACCOUNTING PERIOD IN WHICH THE LIABILITY ARISES COMMENTS THE LEVEL OF PENALTY IS A % OF THE TAX UNPAID 12 MONTHS AFTER THE END OF THE ACCOUNTING PERIOD AND DEPENDS ON THE BEHAVIOUR OF THE TAXPAYER PENALTIES GENUINE MISTAKE=NO PENALTY FAILURE TO TAKE REASONABLE CARE=30% SERIOUS OR DELIBERATE UNDERSTATEMENT=70% SERIOUS OR DELIBERATE UNDERSTATEMENT WITH CONCEALMENT=100% PENALTIES CAN BE REDUCED WHERE THE TAXPAYER MAKES FULL DISCLOSURE AND COOPERATES WITH HMRC TO ESTABLISH THE AMOUNT OF UNPAID TAX TAX RETURNS WITHIN 12 MONTHS AFTER THE END OF THE BALANCE SHEET DATE OR 3 MONTHS AFTER THE ISSUE OF A RETURN IF THIS IS LATER THAN THE NORMAL SUBMISSION DATE 0-3MONTHS=100(500) 3-6 MONTHS 200(1000) 6-12 MONTHS = 10%OF THE TAX UNPAID 6 MONTHS AFTER THE FILING DATE >12 MONTHS 20% OF THE TAX UNPAID 6 MONTHS AFTER THE FILING DATE

PAYMENT DATES

SMALL AND MEDIUM SIZED-9 MONTHS FROM THE ACCOUNTING PERIOD END LARGE COMPANIES TAX PAYABLE IN QUARTERLY INSTALMENTS

INSTALMENTS BASED ON PROJECTED TAX LIABILITY AND PAYABLE ON 14TH OF MONTHS 7,10,13 AND 16 FOLLOWING THE START OF THE ACCOUNTING PERIOD CLAIM QUANTIFIED

INTEREST FOR ANY LATE PAYMENTS OMITTING INFORMATION OR FALSE INFORMATION=DIFFERENCE BETWEEN THE TAX DUE AND THE TAX PAID

CLAIMS

INCLUDED IN THE TAX RETURN OR SEPARATE CLAIM IN WRITING

HMRC AMENDMENTS TO 9 MONTHS FROM DATE RETURN RETURN IS FILED TAXPAYER AMENDMENTS TO RETURN ERROR OR MISTAKE CLAIM 12 MONTHS FROM FILING DATE WITHIN 4 YEARS FROM THE END OF THE ACCOUNTING PERIOD CONCERNED 6 YEARS FROM THE END OF THE ACCOUNTING PERIOD CONCERNED UP TO 3000 PER YEAR OF ASSESSMENT

RECORDS KEPT

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HMRC ENQUIRIES

12 MONTHS FROM THE DATE THE RETURN IS ACTUALLY FILED

DEADLINE IS EXTENDED IF A RETURN IS FILED LATE OR AMENDED IE 12 MONTHS FROM THE END OF THE RELEVANT QUARTER IN WHICH THE RETURN IS SUBMITTED OR AMENDMENT MADE

HMRC DETERMINATIONS 3 YEARS FROM THE A DETERMINATION CORPORATION TAX FILING CANNOT BE APPEALED DATE AGAINST. IT CAN ONLY BE REDUCED BY AN ACTUAL SUBMISSION OF THE TAX RETURN HMRC DISCOVERY ASSESSMENTS 4 YEARS FROM THE END OF THE ACCOUNTING PERIOD CONCERNED, 6 YEARS IF THERE IS A CARELESS ERROR AND 20 YEARS IF THERE IS A DELIBERATE ERROR OR FAILURE TO NOTIFY CHARGEABILITY TO TAX THE LEVEL OF PENALTY IS A % OF THE REVENUE LOST AS A RESULT OF THE INACCURACY OR UNDER ASSESSMENT AND DEPENDS ON THE BEHAVIOUR OF THE TAXPAYER GENUINE MISTAKE=NO PENALTY FAILURE TO TAKE REASONABLE CARE=30% SERIOUS OR DELIBERATE UNDERSTATEMENT=70% SERIOUS OR DELIBERATE UNDERSTATEMENT WITH CONCEALMENT=100% PENALTIES CAN BE REDUCED WHERE THE TAXPAYER MAKES FULL DISCLOSURE AND COOPERATES WITH HMRC TO ESTABLISH THE AMOUNT OF UNPAID TAX

PENALTIES FOR INCORRECT RETURNS

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CAPITAL GAINS RELIEFS

RELIEF
ENTREPRENEURS RELIEF WHO CAN CLAIM INDIVIDUALS IN WHAT CIRCUMSTANCES SALE OF BUSINESS OR SHARES ON WHICH ASSETS DISPOSAL OF THE WHOLE OR PART OF A BUSINESS CARRIED ON BY THE INDIVIDUAL OR IN PARTNERSHIP. ASSETS OF THE INDIVIDUALS OR PARTNERSHIPS TRADING BUSINESS THAT HAS NOW CEASED SHARES IF THE INDIVIDUAL OWNED AT LEAST 5% OF THE OSC AND WAS AN EMPLOYEE OF THE COMPANY. CONSEQUENCES THE FIRST 5M OF QUALIFYING GAINS ARE TAXED AT 10% LOSSES (OTHER THAN LOSSES FORMING PART OF THE SALE OF A BUSINESS THAT QUALIFIES) AND THE ANNUAL EXEMPTION CAN BE ALLOCATED AGAINST GAINS NOT QUALIFYING ENTREPRENEURS RELIEF FIRST- TO REDUCE GAINS TAXABLE AT 18%/28% RELIEF GIVEN AFTER OTHER RELIEFS HAVE BEEN CONSIDERED RESTRICTIONS THE ASSET BEING DISPOSED OF MUST HAVE BEEN OWNED IN THE 12 MONTHS PRIOR TO THE DISPOSAL IF THE DISPOSAL IS AN ASSET OF THE INDIVIDUALS OR PARTNERSHIPS TRADING BUSINESS THAT HAS NOW CEASED THE DISPOSAL MUST TAKE PLACE WITHIN 3 YEARS OF THE CESSATION OF THE TRADE THE 5M LIMIT IS A LIFETIME LIMIT WHICH IS REDUCED EACH TIME A CLAIM FOR THE RELIEF IS MADE NON BUSINESS USEONLY ELIGIBLE GAIN CONSIDERED INDIVIDUALS: 4 YEARS FROM THE END OF THE TAX YEAR IN WHICH THE DISPOSAL OCCURRED COMPANIES: 4 YEARS FROM THE END OF THE ACCOUNTING PERIOD IN WHICH THE DISPOSAL OCCURRED NON BUSINESS USE AS ABOVE INDIVIDUALS: 4 YEARS FROM THE END OF THE TAX YEAR IN WHICH THE DISPOSAL OCCURRED TIME LIMIT FOR CLAIMS 12 MONTHS FROM 31 JAN NEXT FOLLOWING THE END OF THE TAX TEAR IN WHICH THE DISPOSAL IS MADE.

ROLLOVER RELIEF

INDIVIDUALS SALE AND REINVESTMENT AND COMPANIES OF QUALIFYING ASSETS

LAND AND BUILDINGS FIXED PLANT AND MACHINERY USED IN THE TRADE GOODWILL (INDIVIDUALS ONLY) GOODWILL (UNINCORPOATED ONLY

FULL REINVESTMENT OF PROCEEDS=ENTIRE GAIN IS DEFERRED INTO BASE COST OF NEW ASSET. PARTIAL REINVESTMENT OF PROCEEDS GAIN TAXED NOW= PROCEEDS NOT REINVESTED (LIMITED TO ORIGINAL GAIN) GAIN IS HELDOVER UNTIL THE EARLIEST OF:

HOLDOVER RELIEF

INDIVIDUALS SALE OF QUALIFYING AND COMPANIES ASSSETS AND REINVESTMENT INTO DEPRECIATING ASSETS

DEPRECIATING ASSETS= FIXED PLANT & MACHINERY

SALE OF THE DEPRECIATING ASSET LEASEHOLD PROPERTY WITH LESS THAN OR EQUAL TO 60 YEARS REMAINING CEASE TO USE IN TRADE 10YRS FROM ITS ACQUISITION

COMPANIES: 4 YEARS FROM THE END OF THE ACCOUNTING PERIOD IN WHICH THE DISPOSAL OCCURRED

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GIFT RELIEF

INDIVIDUALS

GIFT OR SALE AT UNDERVALE

ASSETS USED IN THE TRADE OF INDIVIDUAL,OR IN THEIR PERSONAL COMPANY(AT LEAST 5% HOLDING) UNQUOTED SHARES QUOTED SHARES (AT LEAST 5% HOLDING)

OUTRIGHT GIFT=ENTIRE GAIN IS DEFERRED ONTO DONEE. SALE AT UNDERVALUE-GAIN TAXED NOW= ACTUAL PROCEEDS ABOVE COST ANY REMAINING GAIN DEFERRED ONTO DONEE GAINS ON CHARGEABLE ASSETS ARE DEFERRED UNTIL INDIVIDUAL SELLS SHARES

RESTRICT FOR PERSONAL CO SHARES GAIN ELIGIBLE=CBA/CA

4 YEARS FROM THE END OF THE TAX YEAR IN WHICH THE DISPOSAL OCCURRED

INCORPORATION RELIEF

INDIVIDUALS

UNINCORPORATED BUSINESS TRANSFERS TRADE AND ASSETS TO COMPANY

ALL CHARGEABLE ASSETS

IF NON SHARE CONSIDERATION GAIN ELIGIBLE= GAINXSHARE CONSIDERATION/ TOTALCONSIDERATION

AUTOMATIC IF CONDITIONS MET TIME LIMIT TO DISAPPY IS 2 YEARS FROM 31 JANUARY FOLLOWING THE END OF THE TAX YEAR IN WHICH THE BUSINESS IS TRANSFERRED AUTOMATIC TIME LIMIT FOR DETERMINATION OF PRINCIPAL PRIVATE RESIDENCE IS 2 YEARS FROM THE ACQUISITION OF THE SECOND PROPERTY AUTOMATIC

PRINCIPAL PRIVATE RESIDENCE RELIEF

INDIVIDUALS

SALE OF MAIN RESIDENCE

MAIN RESIDENCE INCLUDING HALF A HECTARE OF LAND

GAIN FULLY EXEMPTED

PPR RESTRICTED IF PERIOD OF ABSENCE EXCLUDING DEEMED OCCUPATION)

LETTING RELIEF

INDIVIDUALS

RENTAL OF WHOLE OR PART OF MAIN RESIDENCE

MAIN RESIDENCE

RELIEF LOWER OF: PPR GIVEN 40000 GAIN DUE TO LETTING

MUST HAVE BEEN MAIN RESIDENCE AT SOME POINT IN TIME

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