ACCA Tax UK

• control > 51%
• establishment in UK

• one VAT for whole group per period
• intercompany transactions are outside of VAT scope

• claimant must be registred for VAT
• input is evidenced by tax invoice
• recovery not blocked (cars, private use, customers)
• the input is
  • imported to the UK
  • puraches in the UK
• Input purchased by traders making wholly exempt supplies is IRRECOVERABLE

Basic Tax point

• when goods are handed over
• when service is finished

Actual tax point

• if invoice/payment is done within 14 days after basic TP or anywhere before TP, then the actual TP is used

• zero rated supply

• out of VAT scope

• with postponed accounting
  • VAT does not have to be paid at time of importation
  • Import VAT is declared as output VAT but can be reclaimed as input VAT

• as being supplied in the country where customer is situated

one for every VAT period

6 years

1m + 7 days of end of relevant VAT quarter

• points for each late submission
• 4 points = 200 penalty
• every after = 200 penalty
• it takes 12 months of no delays to set points to 0

• VAT liabilitites >2'300'000
• end of 2nd & 3dmonth (for each quarter) - 1/24 of VAT liability from previous year
• end of first month in next quarter = balancing payment

• entry: taxable supplies <1'350'000
• must leave: turnover > 1'600'000
• 9 monthly payments on account (10% of VAT due in previous year)
• balancing mayment 2 months after end of period

only with annual accounting. Cash accounting & flat rate scheme cannot be used together

If taxpayer is RESIDENT In UK

!! the gains can arise inside OR outside the UK

if the transfer of property is located IN the UK OR outside, if transferor is DOMICILED in UK

• if income/gains arrise within UK territory
• if company is resident within UK for tax purposes
  •  

if place of supply is in the UK

1. automatic overseas test (automatically NOT resident)
2. automatic UK test (=UK resident)
3. "Ties" test

NOT UK resident if:

1. you were resident in previous 3 years but spent <16 days in the UK in CURRENT tax year
2. NOT resident in previous 3 year and spent <46 days days in the UK in CURRENT tax year
3. working full time overseas and
   1. spend <91 days in UK
   2. <31 work days in UK
   3. no significant break in overseas work

Automatic NOT resident

1. >183 days spent in UK
2. only home is in UK
3. work full-time in UK for any period of 365 days
   1. thereof 75% work days in UK
   2. no significant break

1. Family - UK resident spouse/partner/child <18
2. accommodation - a place available in UK for min 91 days
3. work - substantive work in UK
4. 90-day - spent <90 days in UK in either of the previous 2 years
5. country - spent more time in UK than any other country

1. taxable on WORLDWIDE profit
2. UK resident if:
   1. incorportated in UK
   2. central Mgmt /control in UK

1. tax assessment & collection (& penalties)
2. payment & administration of child benefits & tax credits
3. responsible for min. wage enforcement & recovery of student loans
4. issues tax returns

1. HMRC
2. 1st tier tribunal
3. upper tier tribunal

direct tax decisions must be appealed to HMRC fist.

Before appealing to a tribunal, you can order a a statutory review

HMRC is accountable to the chancellor of Exchequer.

HMRC is operating under the oversight of the Treasury.

HMRC excersie their functions in the name of the crown

• each person liable to UK tax SEPARATELY
• each company liable to tax SEPARATELY (even if member of a group)

within 4 years of:

• tax year (income T. & CGT)
• chargeable acc. period (corp. Tax)
• Tax period (VAT)