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Collection of unpaid tax via PAYE

Harish Verma

Q: Can I pay my tax due by asking the revenue to collect it from my following Tax Years PAYE  A: Yes if you meet two conditions First the amount of the Tax Payment due is less then £3,000 and secondly the Tax payer is an Employee or receives a Pension. Second condition is that you must file your 2015/16 Tax Return by 31 October 2016 (if filing it on Paper) or by 31 December 2016 if filing your Tax Return online. Tax Savings Tip This means, best file your return early and save cash, as Tax can be collected...

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Balancing Payments

Harish Verma

Q What is a Balancing Payment and when is it payable ? A: Income tax(which has not been deducted at source) and Class4 NIC are paid as follows: First payment on account by 31 January in the Tax Year. Second payment on account by 31 July following the end of the Tax Year. Balancing payment by 31 January following the end of tax year. Payments on account is half the income tax paid and Class 4 NICs paid under self -assessment for the previous Tax Year. The Balancing Payments paid on 31 January following the Tax Year. The balancing payment...

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Payment dates of income Tax

Harish Verma

Q: How is the Payment on account calculated? A: The Payment on Account for a Tax Year is calculated on the Income Tax paid plus the Class 4 National Insurance for the Previous Tax Year. Example: For the Tax Year 2014/15 Sheila a sole trader paid tax as follows: Total Income Tax liability £20,400  Tax deducted at source on savings income £8,400 Class 4 NIC £3,800 The Payment on Account for 2015/16 is based on the income tax paid and class 4 NIC for the previous Tax Year (2014/15) Total Income Tax liability 2014/15 £20,400  Less Tax deducted at source...

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Right to Amend theTax Return

Harish Verma

Q: Has HMRC the right to amend my Tax Return? A: HMRC have a right to amend your Tax Return. Such correction is for obvious errors (errors of principal and arithmetic). The correction must be made by HMRC within nine months of the date the return is actually f filed ? Q: Can the Tax payer also amend their Tax Return, after they have filed the return with HMRC ? A:Yes the Taxpayer also has the right to amend their Tax Return. The Tax Return can be amended within 12 months of the norl due submission date. The Normal due submission...

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Tax Administration- Retention of Records

Harish Verma

Q: How long should a business keep it's records? A: the business, should keep it's records for 5 Years after the 31 January following the end of the Tax Year relating to the Records. Example: for the Tax Year 15/16 (5 April 2015 to 5 April 2016) the records for this period must be kept for 5 Years from 31 January 2017 i.e to 31 January 2022 Q: How long should a non business keep it's records for after the Tax Year A: Keep your records for 1 Year after the 31 January following the end of the Tax year...

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