SALF201 - Income Tax Self Assessment Tax Returns: Outline

SALF202 Introduction

SALF203 Personal Tax Returns

The Tax Return is required to establish a taxpayer’s net tax liability on total income and any chargeable gains

Section 8(1), (1A), (1AA) and (5)

There are fixed time limits for filing a Tax Return

Section 8(1)(a) and 8(1A)

Times at which a Tax Return is filed (‘delivered’)

There are automatic penalties for failure to file a Tax Return on time

Section 93

HMRC may make a determination of the tax due

Section 28C

The fixed filing dates for Tax Returns also define the due dates for the payment of tax

Accounts, statements and documents may be required with the Tax Return

Sections 8(1)(b) and 12B

A partner’s share of any partnership income must be included in his or her own Tax Return

Section 8(1B) and 8(1C)

SALF204 Self Assessment

All Tax Returns include ‘self assessment’ of the tax due

Section 9(1)

If the taxpayer files the Tax Return early enough HMRC will assist in the calculation of the tax due

Section 9(2)

Filing date for taxpayers whose additional tax liabilities are collected through PAYE

HMRC calculations

Section 9(3)

A calculation made by HMRC is treated as if it were a self assessment made by the taxpayer

Corrections of errors or omissions in the Tax Return

Section 9ZB
Section 9ZA

Other rules

SALF205 Time limits for self assessment procedure

Time limits are normally set by reference to the 31 January following the year of assessment

Section 34(1)

SALF206 Information to be included in the tax return

Specification of information required in a Self Assessment tax return

Section 8(1)

Use of provisional figures in tax returns

Use of judgmental figures, for example, valuations in tax returns

Informal advice and uncertainty

HMRC rulings

Inaccuracies in the tax return

Error or mistake relief claims

Section 33(1)
Section 33(2)

SALF207 Sanctions against a failure to file a tax return

SALF208 Penalties for Failure to File a Tax Return on Time

There are both automatic and discretionary penalties for failure to file a tax return on time

Section 93

Fixed penalties

Section 93(2) & (4)

Example: Fixed penalties of late filing of tax return

Restriction of fixed penalties where tax due is minimal

Section 93(7)

Example: Restriction of fixed penalties where tax due is minimal

Appeals against the determination of a fixed penalty

Section 93(8)

Daily penalties

Section 93(3) & (6)

Tax-geared penalties may be determined in serious cases of delay

Section 93(5)

Right of appeal against penalty determinations

Section 100B

Example: Daily and tax-geared penalties

SALF209 Sanctions against a failure to file a tax Return: Determination of self assessment where tax return not filed

Section 28C

Determination of tax due

Section 28C(1) and (1A)

Notice to be served on the taxpayer

Section 28C(2)

The determination is treated as a self assessment until such time as the tax return is filed

Section 28C(3)
Section 28C(4)

Time limits for determinations and subsequent self assessments

Section 28C(5) and (6)

SALF210 Other taxpayer obligations Requirement to notify chargeability

Section 7(1)

Time limit for notification

Exceptions to the requirement to notify chargeability

Section 7(3) to (7)

Penalties for failure to notify chargeability

Section 7(8)

SALF211 Requirement to keep records on which tax return is based

Taxpayer must keep and preserve records relevant to tax liability

Section 12B(1)

Period for which records must be kept

Section 12B(1)(b) & (2)
Section 12B(2A)

Business records to be kept

Section 12B(3) & (6)

Other records to be kept

Records may be preserved as copies of the originals

Section 12B(4) and (4A)

Penalty for failure to keep records as required

Section 12B(5)

Failure to keep records on which a claim is based

Section 12B(5A)