ICAEW CFAB PoT Revision Class - Tax Admin

Christian's total income tax liability for 2022/23 was £30,000 and his Class 4 NIC liability was £4,000. During 2022/23 Christian paid £12,000 of his income tax liability by deductions at source. Christian's capital gains tax liability for 2022/23 was £1,000.

What is Christian's first payment on account for 2023/24? £

Dave started to trade as a sole trader on 1 January 2024. He had previously been an employee paying all of his tax under the PAYE system.

Dave must notify HMRC of his liability to income tax by:

A 5 October 2024

B 31 January 2025

Dave must pay his first payment of income tax under the self-assessment system by:

C 31 July 2024

D 31 January 2025

• 5 October 2024

• 31 January 2025

• 31 July 2024

• 31 January 2025

Nanette's tax payable by self-assessment for 2022/23 was £12,000. She paid two equal payments on account of £6,000 on 31 January 2024 and 15 September 2024 in respect of 2023/24.

Nanette's actual tax payable by self-assessment for 2023/24 is £16,000. She made a balancing payment of £4,000 on 31 January 2025.

Which of the following statements are correct?

Nanette is liable to a penalty for late payment in respect of the payment made on 15 September 2024.

A Correct

B Incorrect

Nanette will be charged interest in respect of the first payment on account, on tax underpaid of £2,000, from 1 February 2024 to 30 January 2025.

C Correct

D Incorrect

• Correct

• Incorrect

• Correct

• Incorrect

Erin submitted her electronic tax return for 2022/23 on 12 February 2024.

HMRC must give notice of an intention to enquire into the return by:

• 31 January 2025

• 12 February 2025

• 28 February 2025

• 30 April 2025

Kalim has made the following payments of tax in relation to 2022/23.

· 1st payment on account £3,500 paid on 31 January 2023

· 2nd payment on account £3,500 paid on 30 September 2023

· Balancing payment £2,000 paid on 27 February 2024. The payments on account were the correct amount based on the 2021/22 tax payable.

Assume interest on late paid tax is levied at 6.75% pa.

The amount of interest Kalim has to pay on his late paid tax is £

A notice to make a 2023/24 tax return was issued to Herbert on 25 August 2024.

Herbert should file his tax return by:

• 31 October 2024 if he wants to submit a paper return, and by 31 January 2025 if he wishes to submit his return electronically

• 25 November 2024 if he wants to submit a paper return, and by 31 January 2025 if he wishes to submit his return electronically

• 25 November 2024 if he wants to submit a paper return, and by 25 November 2024 if he wishes to submit his return electronically

• 31 January 2025 if he wishes to submit his return electronically. There is no option to submit a paper return

Jack's tax position for 2023/24 and the previous year is as follows. (refer picture)

Jack made a payment on account for 2023/24 on 31 January 2024. To avoid any interest charges you advised that he should make a payment on that date of what amount?

• £5,050

• £6,700

• £7,850

• £7,975

Kiri's income tax and NIC liabilities for 2022/23 were:

Income tax

£3,200

Class 4 NICs

   £700

Kiri made payments on account of £3,600 towards her 2022/23 liability.

What is Kiri's first payment on account for 2023/24?

• £1,800

• £0

• £150

• £1,950

Sun Ltd, which has 15 employees, has yet to pay its PAYE or NIC due for the last month of 2023/24. It has also failed to submit its P11D forms relating to 2023/24.

The correct due date for the PAYE and NIC Class 1 relating to the final month of 2023/24 is:

A 17 April 2024

B 22 April 2024

The correct due date for the submission of P11D forms relating to 2023/24 is:

C 31 May 2024

D 6 July 2024

• 17 April 2024

• 22 April 2024

• 31 May 2024

• 6 July 2024

Freedom Ltd has 20 employees with monthly PAYE income tax and national insurance contributions of £3,500.

Select whether the following statements are true or false.

Freedom Ltd is permitted to pay its PAYE quarterly.

A True

B False

The deadline for Freedom Ltd to supply each employee with their P60 is 6 July following the end of the tax year.

C True

D False

• True

• False

• True

• False