1. SELF ASSESSMENT

2. ORDER OF PRESENTATION: 1.WHAT IS SELF ASSESSMENT (SA). 2.WHO ARE REQUIRED TO FILL OUT SA FORM. 3.IMPORTANT DATES. 4.BASIC INFORMATION 5.CASE STUDY – TOM JONES 6.JONES HARDWARE 7.MULTIPLE CHOICE QUESTIONS?

3. SELF ASSESSMENT SYSTEM! SYSTEM INTRODUCED IN TAX YR 1996/97. SYSTEM WHEREBY THE TAX PAYER ACCOUNTS FOR INCOME EITHER PARTIALLY TAX/NOT TAXED AT SOURCE. TAX PAYER LEGALLY RESPONSIBLE FOR SA RETURN.

4. WHO ARE REQUIRED TO FILL OUT SA FORM? INDIVUDUAL RECEIVING INCOME NOT TAXED AT SOURCE. FOR E.G.  BUSINESS INCOME – SOLE TRADER/PARTNERSHIP.  HIGHER RATE TAXPAYER.  ALL DIRECTORS OF COMPANIES.

5. IMPORTANT DATES – SURROUNDING SA. TAX YEAR – 6 TH APRIL TO 5 TH APRIL. E.G. TAX YR 2009/10. 6 TH APRIL 2009 TO 5 TH APRIL 2010. ISSUE OF SA RETURNS: END OF APRIL FOLLOWING TAX YR. COMMENCEMENT OF TRADE – NOTIFY WITHIN 3 MTHS OF END OF 1 ST MONTH TRADE START UP.

6. IMPORTANT DATES – SURROUNDING SA. REGISTRATION FOR SA – SA1 (REGISTRATION FORM) HMRC WILL SEND – UTR NUMBER. ALTERNATIVE – FILE SA ON LINE OR RECEIVE PAPER BASED TAX RETURN.

7. FILING DATES: PAPER RETURN – FILE BY 31 ST OCTOBER FOLLOWING TAX YR. FILE ON LINE – FILE BY 31 ST JAN FOLLOWING THE TAX YEAR. E.G. TAX YEAR 2008/09 – FILE DATE ON 31 ST JAN 2010.

8. TIME LINE FOR TAX. 6 TH APRIL 2008 5 TH APRIL 2009 TAX YR 08/09 31 ST OCT 2009 31 ST JAN 2010

9. PAYMENT DATES: Paying your tax ‘ YOU MUST PAY ANY AMOUNT DUE FOR 2008-09 BY 31 JANUARY 2010. THIS PAYMENT DEADLINE IS THE SAME WHETHER YOU'VE FILED ON PAPER OR FILE ONLINE’. (TAKEN FROM HMRC)

10. PENALTIES: FIXED PENALTIES: THE INITIAL PENALTY IS £100 IF THE RETURN IS NOT FILED BY THE DUE DATE. A DAILY PENALTY CAN BE IMPOSED OF £60 PER DAY. TAX GEARED PENALTIES: IF THE RETURN HAS NOT BEEN FILED OVER 12 MONTHS OF ITS DUE DATE THEN A TAX GEARED PENALTY MAY BE IMPOSED.

11. BASIC TAX INFORMATION: PERSONAL ALLOWANCE £6035 (IF YOU DON’T USE YOU LOSE IT) INCOME SOURCES EMPLOYMENT INCOME. RENTAL INCOME TRADING INCOME INVESTMENT INCOME CLASSIFICATION OTHER INCOME (EMPLOYMENT, RENTAL, TRADING ). SAVINGS INCOME – (BANK,BUILDING SOCIETY INTEREST)

12. BASIC TAX INFORMATION: ORDER OF TAXATION: DIVIDENDS – 3RD SAVINGS – 2 ND. E.G. 1. BANK INTEREST. 2. BUILDING SOCIETY INTEREST. OTHER INCOME - 1 ST. E.G. 1.EMPLOYMENT INCOME 2.RENTAL INCOME 3.TRADE INCOME

13. BASIC INFORMATION – INCOME TAX RATES. INCOME TAX RATES & TAXABLE BANDS -2008/09 BASIC RATE: 20% £0 - £34800 HIGHER RATE: 40% OVER £34800 ( APPLIES TO OTHER INCOME & SAVINGS INCOME) DIVIDENDS - BASIC RATE 10% DIVIDENDS - HIGHER RATE 32.5%

14. BASIC INFORMATION – NATIONAL INSURANCE CONTRIBUTIONS. CLASS 2 AND CLASS 4: CLASS 2 - £2.30 PER WEEK. CLASS 4 – BASED ON TRADE PROFITS. LOWER PROFIT LIMIT £5,435 UPPER PROFIT LIMIT £40,040 ABOVE UPPER PROFIT LIMIT 8% 1%

15. USEFUL INFORMATION FOR THE PREPARATION OF ACCOUNTS YOUR BASIC RECORDS WILL NORMALLY INCLUDE: A RECORD OF ALL YOUR SALES, WITH COPIES OF ANY INVOICES YOU'VE ISSUED A RECORD OF ALL YOUR BUSINESS PURCHASES AND EXPENSES INVOICES FOR ALL YOUR BUSINESS PURCHASES AND EXPENSES, UNLESS THEY'RE FOR VERY SMALL AMOUNTS DETAILS OF ANY AMOUNTS YOU PERSONALLY PAY INTO OR TAKE FROM THE BUSINESS COPIES OF BUSINESS BANK STATEMENTS

16. CASE STUDY – TOM JONES. FACTS:  EMPLOYED  HIGHER RATE TAXPAYER  INCOME NOT TAXED AT SOURCE – RENTAL.  WIFE VOLUNTARILY UNEMPLOYED.

17. CASE STUDY 2. FACTS:  SELF EMPLOYED.  BUSINESS 3 YRS OLD.  LOSSES MADE IN YR 1 AND YR 2.  LOSS RELIEF IN OPENING YEARS.

18. MULTIPLE CHOICE QUESTIONS: 1 – WHO IS RESPONSIBLE FOR SA RETURN? A.HMRC B.THE TAX PAYER C.THE TAX PAYER’S EMPLOYER 2 – WHEN DOES THE ONLINE SA RETURN HAVE TO BE FILED FOR TAX YR 2008/09? A.28 TH FEBRUARY 2009 B.31 ST JANUARY 2010 C.31 ST JULY 2009

19. MULTIPLE CHOICE QUESTIONS: 3. WHAT IS THE INITIAL PENALTY FOR MISSING THE DUE DATE FOR FILING? A.£150 B.£250 C.£100 4.TAX YR 2008/09 – WHEN DOES IT START AND END. A.6/4/2008 TO 31/3/2009 B.5/4/2008 TO 6/4/2009 C.6/4/2008 TO 5/4/2009

20. MULTIPLE CHOICE QUESTIONS: 5. ORDER OF TAXATION ON INCOME SOURCES. A.OTHER INCOME, DIVIDEND INCOME, SAVINGS INCOME. B.DIVIDEND INCOME, OTHER INCOME, SAVINGS INCOME. C.OTHER INCOME, SAVINGS INCOME, DIVIDEND INCOME

21. THE END.