Personal tax - Payments of tax/penalty charges

AHarrison92

The section I need to get down in particular is the big written question (1.7 I think). What are the main topics covered in this section and how have you found the best way to prepare for this question? So I understand things like payment on accounts and submission of tax returns can come up, but it's how to structure the answer that I'm struggling with.

So would you first need to know the deadlines, and then the consequences for not sticking to those deadlines? So below, I have the following notes for when to submit the tax returns:

"Paper based tax returns have to be handed to the HMRC by 31st October following the end of tax year. Online returns have to be handed to HMRC by 31st January.

Late submission of the tax return:

£100 penalty for missing the deadline

For returns over 3 months late – an additional daily penalty of £10 per day up to a 90 day maximum of £900

For returns over 6 months late – Further £300 or 5% of tax if this is higher.

For returns over 12 months late – Further £300 or 5% of tax if this is higher. In serious cases it could be up to 100% of the tax due instead."

Is this correct? If so, I need to find out how to write something similar to this for payments on account, not keeping records, filing incorrect returns etc, but am struggling to identify the penalties that link with each one.

SACKERS

You have good understanding of the rules you now need to be able to apply the above to the facts of the question.
This tests application of your knowledge not just recall of facts look at the examiners feedback.
https://www.aat.org.uk/system/files/study_resources/L4-PTAX-APR.pdf

The approach I teach for a late tax return is:
1.State the actual filing date of the return per question.
2. State the date is should be filed. (remember this is 31 January following the end of the tax year in all cases)
3. State how late the tax return is.
4. Then using the above state the penalty that will be due.
5. Finally Always state that "if the taxpayer has a reasonable excuse no penalty is due"

This approach will get you full marks.