|
|
Main
features
Income and capital gains
of individuals are taxed by self-assessment. Individuals have to give
precise details of income and deductions on their tax return, and may
include a complete computation of their tax liability.
- The
deadline for filing the return is 31 January after the tax year.
However, those who file on paper and want HM Revenue and Customs
(HMRC) to calculate their tax liability have to submit the return by
30 September.
- Taxpayers
can amend a self-assessment return within 12 months of the filing
date. This is also the time limit by which many elections and claims
for relief must be made.
- HMRC
normally has 12 months from the filing date to make enquiries or ask
for further information. This period is extended where there has been
fraud or neglect or where an error or omission could not have been
identified from the information in the tax return.
Companies are also taxed by self-assessment. Their
filing and payment dates are based on their accounting date (see Corporation Tax: Self-assessment).
Payments
All income and
capital gains tax for a tax year is charged by one assessment and the tax
is payable on the same date.
- Individuals
normally have to make interim payments on 31 January in the tax year
and on the following 31 July.
- These
payments are half the previous year’s income tax liability, after
taking into account tax deducted at source.
- The
payments can be reduced where taxpayers can show that their actual
liability for the year is likely to be lower.
- There
are no interim payments where the previous year’s tax liability was
less than £500 or at least 80% of the total tax was collected at source.
- The
final balancing payment or repayment is due on 31 January following
the end of the tax year, together with any capital gains tax.
- Interest
and surcharges may be charged on late payments, and penalties may be
charged on late or incorrect returns.
The Dyer Partnership, 17
Westminster Court, Hipley Street, Old Woking, Surrey GU22 9LG
Copyright © 2002 - 2005 The Dyer Partnership
Limited
|
