Personal Tax and penalties

A-Vic

Can i check these with someone?

Reasonble care - No Penalty

Careless unprompted - max 30% Min 0%
carelss prompted - max 30% min 15%

Deliberate unprompted - max 70% Min 20%
Deliberate Prompted - Max 70% Min 35%

Deliberate and concealed unprompted - Max 100% Min 30%
Deliberate and concealed Prompted - Max 100% Min 50%


And a daft question the percentage i take as the percentage of the tax bill for the year???

safrica

Oh, those penalties, they just won't go into my head....hope it doesn't come up big deal in tomorrow's exam....sorry I'm not helping you much !!!

A-Vic

in class we were told just look them up - we havnt even covered the tax return so doing reseach - i know a bit late - i have a feeling it might with the capital gains been made easier this year

safrica

A-Vic wrote: »

in class we were told just look them up - we havnt even covered the tax return so doing reseach - i know a bit late - i have a feeling it might with the capital gains been made easier this year

Yes, that's what I fear also...we were told at college to expect more on benefits in kind, shares with same day acquisition and /or next 30 days,income properties more thorough to make up for CGT being easier now...Ok with those but dreading all those penalties...we'll see !!

LucyB

A-Vic wrote: »

Can i check these with someone?

Reasonble care - No Penalty

Careless unprompted - max 30% Min 0%
carelss prompted - max 30% min 15%

Deliberate unprompted - max 70% Min 20%
Deliberate Prompted - Max 70% Min 35%

Deliberate and concealed unprompted - Max 100% Min 30%
Deliberate and concealed Prompted - Max 100% Min 50%


And a daft question the percentage i take as the percentage of the tax bill for the year???

I have never even heard of these...

A-Vic

heres where i got them from

http://www.hmrc.gov.uk/about/new-penalties/penalties-leaflet.pdf

Sally

Nor me - are they in any of the other books (not in Osborne.. i dont think).

A-Vic

From HMRC Pages

Sally

We havent covered these in college. The penalties we covered were very simple.. so simple that i was leaving them to last minute to look over!! Something else to add to my list of weak areas!

A-Vic

Yeah at college we did the 100 pound ect but when i looked at my book it looked different so decided look at HMRC as the rules are set but them.

Although we were also told all forms of return have to be in by jan 31st 2009 lol i know all on-line can be but paper are 31st October 2008

Sally

thanks.. have printed them off now

A-Vic

Still not sure if there correct tho thats why i asked lol

angharadmai

Yes, they are correct, they are in my BPP book.

A-Vic

thanks

Cyfarthfa

Here's what's in the Kaplan book, slightly easier to remember:

Penalties for late filing:

Short delay: up 6 months £100
Delay 6 - 12 months: further £100
Delay over 12 months: tax geared. This cannot exceed tax liability though.


Penalties for incorrect tax returns: % of their tax under declared

Mistake: No penalty
Failure to take reasonable care: 30%
Deliberate understatement: 70%
Deliberate understament with concealment: 100%

A-Vic

Fab thanks glad i looked

Also found out it is on the tax missed not on the whole amount does it mention that?

Cyfarthfa

it says on the amount under declared which i guess is amount missed, doesn't mention anything if it is the other way around though.

other useful bits i found is that for late payment there is an interest charge, charged from day payment is due to the day before it is actually paid. Also there is what's called a surcharge, which only applies to the final payment which is 5% of tax due if more than 28 days late and a further 5% if more than 6 months.

A-Vic

Good to know - now watch it not be in lol

Am still trying to find out what happens with gift aid

A-Vic

a harrrr answers

Gift Aid - tax return page 4 'Charitable Giving' section if in current year box 5

Cyfarthfa

Are you revising the payment on account bit?

I'm just looking at the calculations now and can't get my head around it! I know that the 3 dates are 31st Jan 09 31st July 09 and then 31st Jan 10. Surely if we needed to know how to calculate these they would be in class notes??

A-Vic

Ive given up with my books try here

http://www.hmrc.gov.uk/payinghmrc/selfassessment.htm#2

A-Vic

Self Assessment payment deadlines
31 January
You must pay any amount due by 31 January following the end of the tax year. For example, for the tax year 2008-09 (ending on 5 April 2009) you must pay any tax due by 31 January 2010. The payment deadline is the same whether you file on paper or online.

You'll need to pay one or both of the following:

The 'balancing payment'- the balance of tax you owe for the previous tax year (you may have paid some of the tax already).
The first of two 'payments on account' (advance payments) for the current tax year. You won't always be asked for these - it'll depend on the amount of tax due and the kind of income you receive.
You'll usually receive a 'Self Assessment Statement' that shows the amount due. If you don't receive this before payment is due, you'll need to work out the tax due yourself using your tax calculation and previous statements or by registering for Self Assessment Online and using the 'View Account' option.

Your Self Assessment Statement - find out more

31 July
If you've been asked to make payments on account, this is the deadline for making your second payment on account'

For example on 31 July 2010, you'd make your second payment on account for the 2009-10 tax year.

A-Vic

Also

Late payment - interest and additional charges
If you pay your tax late HMRC will charge interest from the date the tax was due until your payment is received.

If you still haven't paid your balancing payment (due on the 31 January) by 28 February, you may be charged a 5 per cent additional charge, called a surcharge, on top of the amount you still owe. This is in addition to any interest you've been asked to pay.

If you still haven't paid all of the tax due on 31 January by 31 July, you may be charged a second 5 per cent surcharge on top of the amount you still owe.


Not that am gonna remember any of this tomorrow

Cyfarthfa

thanks - i'm hoping they're not gonna be that mean and actually ask to calulate the interest and amounts per each date!

My biggest problem is with PPR, i don't think i can add the months up properly!

Byrnie

My biggest problem is with PPR, i don't think i can add the months up properly![/QUOTE]

Me too!

A-Vic

Cyfarthfa wrote: »

thanks - i'm hoping they're not gonna be that mean and actually ask to calulate the interest and amounts per each date!

My biggest problem is with PPR, i don't think i can add the months up properly!

I just calaculate by the ten yearsx12 then odd months fingers and toes lol

A-Vic

Part disposal of land

Now that i dont like forgotten how to calculate part disposal of land altogether

dobbieobby

Aha, that's easy! I remember sexy sue very bad (my mates called sue, she's not sexy, but she is bad!!!!)

SO:

Proceeds £Sexy (sold for)

LESS:
£Sexy
Sue (sold for) +Very (Value) x Bad (bought for)

HAHAHA, easy!!!

A-Vic

??

I mean if land bought 20 years ago for £100,000

10 years later he sold 25% for 120,000 when all was valued at £480,000

how do you work out the cost ect

dobbieobby

I mean if land bought 20 years ago for £100,000

10 years later he sold 25% for 120,000 when all was valued at £480,000

how do you work out the cost ect

Proceeds (sexy - sold for) 120000

LESS:
Sexy 120000
120000 Sue (sold for) + Very (value) x 480000 Bad (bought)

GAIN:
Proceeds: 120000
Less -96000
Gain: 24000

Right, I'm going home, GOOD LUCK!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

A-Vic

ok so whats your vaule figure?