|
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 want the Inland Revenue 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.
- The Inland Revenue 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’ 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 was less than £500 or at least 80% of the 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.
Copyright © 2003 SharmanS Tel: +44
(0) 207 5836388 Fax: +44
(0) 207 353 9742 Address: 39-40
Temple Chambers, Temple Avenue, Embankment, London EC4Y0HP
|
