SELF ASSESSMENT
Dec 15, 2015
ORDER OF PRESENTATION:
1. WHAT IS SELF ASSESSMENT (SA).2. WHO ARE REQUIRED TO FILL OUT SA FORM.3. IMPORTANT DATES.4. BASIC INFORMATION 5. CASE STUDY – TOM JONES6. JONES HARDWARE7. MULTIPLE CHOICE QUESTIONS?
SELF ASSESSMENT SYSTEM!
• SYSTEM INTRODUCED IN TAX YR 1996/97.
• SYSTEM WHEREBY THE TAX PAYER ACCOUNTS FOR INCOME EITHER PARTIALLY TAX/NOT TAXED AT SOURCE.
• TAX PAYER LEGALLY RESPONSIBLE FOR SA RETURN.
WHO ARE REQUIRED TO FILL OUT SA FORM?
• INDIVUDUAL RECEIVING INCOME NOT TAXED AT SOURCE.
FOR E.G. BUSINESS INCOME – SOLE
TRADER/PARTNERSHIP.HIGHER RATE TAXPAYER.ALL DIRECTORS OF
COMPANIES.
IMPORTANT DATES – SURROUNDING SA.
• TAX YEAR – 6TH APRIL TO 5TH APRIL.
E.G. TAX YR 2009/10. 6TH APRIL 2009 TO 5TH APRIL 2010.
ISSUE OF SA RETURNS:• END OF APRIL FOLLOWING
TAX YR.• COMMENCEMENT OF TRADE
– NOTIFY WITHIN 3 MTHS OF END OF 1ST MONTH TRADE START UP.
IMPORTANT DATES – SURROUNDING SA.
• REGISTRATION FOR SA – SA1 (REGISTRATION FORM)
• HMRC WILL SEND – UTR NUMBER.
• ALTERNATIVE – FILE SA ON LINE OR RECEIVE PAPER BASED TAX RETURN.
FILING DATES:
• PAPER RETURN – FILE BY 31ST OCTOBER FOLLOWING TAX YR.
• FILE ON LINE – FILE BY 31ST JAN FOLLOWING THE TAX YEAR.
• E.G. TAX YEAR 2008/09 – FILE DATE ON 31ST JAN 2010.
PAYMENT DATES:
• Paying your tax • ‘YOU MUST PAY ANY AMOUNT
DUE FOR 2008-09 BY 31 JANUARY 2010. THIS PAYMENT DEADLINE IS THE SAME WHETHER YOU'VE FILED ON PAPER OR FILE ONLINE’.
(TAKEN FROM HMRC)
PENALTIES:FIXED PENALTIES:• THE INITIAL PENALTY IS £100
IF THE RETURN IS NOT FILED BY THE DUE DATE.
• A DAILY PENALTY CAN BE IMPOSED OF £60 PER DAY.
TAX GEARED PENALTIES:• IF THE RETURN HAS NOT
BEEN FILED OVER 12 MONTHS OF ITS DUE DATE THEN A TAX GEARED PENALTY MAY BE IMPOSED.
BASIC TAX INFORMATION:
PERSONAL ALLOWANCE • £6035 (IF YOU DON’T USE YOU
LOSE IT)INCOME SOURCES• EMPLOYMENT INCOME.• RENTAL INCOME• TRADING INCOME• INVESTMENT INCOMECLASSIFICATION• OTHER INCOME (EMPLOYMENT,
RENTAL, TRADING ).• SAVINGS INCOME –
(BANK,BUILDING SOCIETY INTEREST)
BASIC TAX INFORMATION:
ORDER OF TAXATION:
SAVINGS – 2N
D. E.G.1. BANK INTEREST.2. BUILDING SOCIETY INTEREST.
OTHER INCOME -
1ST
. E.G. 1.EMPLOYMENT INCOME2.RENTAL INCOME3.TRA
DE INCOME
BASIC INFORMATION – INCOME TAX RATES.
INCOME TAX RATES & TAXABLE BANDS -2008/09BASIC RATE: 20% £0 - £34800HIGHER RATE: 40% OVER £34800(APPLIES TO OTHER INCOME & SAVINGS INCOME)DIVIDENDS - BASIC RATE 10%DIVIDENDS - HIGHER RATE 32.5%
BASIC INFORMATION – NATIONAL INSURANCE CONTRIBUTIONS.
CLASS 2 AND CLASS 4:CLASS 2 - £2.30 PER WEEK.
CLASS 4 – BASED ON TRADE PROFITS.LOWER PROFIT LIMIT £5,435
UPPER PROFIT LIMIT £40,040ABOVE UPPER PROFIT LIMIT
8%
1%
USEFUL INFORMATION FOR THE PREPARATION OF ACCOUNTS
YOUR BASIC RECORDS WILL NORMALLY INCLUDE:• A RECORD OF ALL YOUR SALES, WITH COPIES OF ANY
INVOICES YOU'VE ISSUED • A RECORD OF ALL YOUR BUSINESS PURCHASES AND
EXPENSES • INVOICES FOR ALL YOUR BUSINESS PURCHASES AND
EXPENSES, UNLESS THEY'RE FOR VERY SMALL AMOUNTS
• DETAILS OF ANY AMOUNTS YOU PERSONALLY PAY INTO OR TAKE FROM THE BUSINESS
• COPIES OF BUSINESS BANK STATEMENTS
CASE STUDY – TOM JONES.
FACTS:EMPLOYEDHIGHER RATE TAXPAYERINCOME NOT TAXED AT SOURCE – RENTAL.WIFE VOLUNTARILY UNEMPLOYED.
CASE STUDY 2.
FACTS:SELF EMPLOYED.BUSINESS 3 YRS OLD.LOSSES MADE IN YR 1 AND YR 2.LOSS RELIEF IN OPENING YEARS.
MULTIPLE CHOICE QUESTIONS:
• 1 – WHO IS RESPONSIBLE FOR SA RETURN?A. HMRCB. THE TAX PAYERC. THE TAX PAYER’S EMPLOYER• 2 – WHEN DOES THE ONLINE SA RETURN
HAVE TO BE FILED FOR TAX YR 2008/09?A. 28TH FEBRUARY 2009B. 31ST JANUARY 2010C. 31ST JULY 2009
MULTIPLE CHOICE QUESTIONS:
3. WHAT IS THE INITIAL PENALTY FOR MISSING THE DUE DATE FOR FILING?
A. £150B. £250C. £1004.TAX YR 2008/09 – WHEN DOES IT START AND END.D. 6/4/2008 TO 31/3/2009E. 5/4/2008 TO 6/4/2009F. 6/4/2008 TO 5/4/2009
MULTIPLE CHOICE QUESTIONS:
5. ORDER OF TAXATION ON INCOME SOURCES.A. OTHER INCOME, DIVIDEND INCOME,
SAVINGS INCOME.B. DIVIDEND INCOME, OTHER INCOME,
SAVINGS INCOME.C. OTHER INCOME, SAVINGS INCOME,
DIVIDEND INCOME