ACCA ATX cheat sheet

Self assessment online filing deadline is 31 January following the tax year; paper returns are due 31 October following the tax year.

Payments on account are each 50% of the prior year's income tax and Class 4 NIC liability, due 31 January and 31 July; CGT and student loan repayments are excluded.

A late self assessment return triggers a £100 fixed penalty; after three months daily £10 penalties apply, capped at £900, with further fixed or percentage penalties at six and twelve months.

HMRC discovery assessment windows are generally four years after the end of the tax year, six years for careless behaviour and twenty years for deliberate behaviour.

Self-employed taxpayers must keep records for five years after the 31 January filing deadline; companies must generally keep accounting records for six years from the end of the accounting period.

A taxpayer may appeal against an HMRC assessment or penalty within 30 days of the notice, requesting an internal review or appealing to the First-tier Tribunal.

The GAAR applies to arrangements whose main purpose is a tax advantage that is not consistent with the policy of the legislation; the GAAR panel can impose adjustments.

DOTAS requires promoters or users to disclose certain tax avoidance schemes to HMRC; disclosed schemes can lead to accelerated payment notices.

Income tax order is non-savings income, then savings income, then dividend income; the personal allowance is allocated against income in the most beneficial order, generally non-savings first.

Personal allowance is reduced by £1 for every £2 of adjusted net income above £100,000 and is nil at £125,140.

Savings starting rate band is up to £5,000 taxed at 0%, reduced by taxable non-savings income; personal savings allowance is £1,000 for basic-rate, £500 for higher-rate and nil for additional-rate taxpayers.

Dividend allowance is £500; dividends above the allowance are taxed at 8.75%, 33.75% or 39.35% depending on the taxpayer's marginal band.

CGT formula: chargeable gain = disposal proceeds − allowable acquisition cost − incidental costs − enhancement expenditure; then deduct current-year losses and the annual exempt amount.

Share matching order for CGT is same-day acquisitions, then acquisitions in the next 30 days, then the pooled holding; bonus issues and rights issues adjust the pool.

Principal private residence relief covers the main residence plus the final nine months of ownership; lettings relief is restricted to periods shared with a tenant.

Class 4 NIC is charged on trading profits between the lower and upper profits limits at the main rate and above the upper profits limit at 2%; Class 2 may apply at the small profits threshold.

IHT charges lifetime chargeable transfers at 0% up to the nil rate band and 20% above it; PETs become chargeable only if death occurs within seven years.

Nil rate band is £325,000 per person; an unused percentage can be transferred to a surviving spouse or civil partner.

Residence nil rate band is £175,000 per person for a qualifying main residence passed to direct descendants, tapered by £1 for every £2 of estate value above £2 million.

Taper relief reduces death tax on lifetime transfers by 20% for each complete year survived after three years: 80%, 60%, 40%, 20% for years four to seven.

Annual exemption is £3,000 per donor, with one year's unused amount carried forward; small gifts of £250 per donee are exempt.

BPR is 100% for unquoted trading company shares and 50% for quoted controlling holdings; APR is 100% for agricultural property used in farming.

Death estate tax is charged on assets at market value less liabilities and reliefs; transfers in the seven years before death use the nil rate band first.

IHT is payable six months after the end of the month of death; tax on land, buildings and qualifying shares may be paid by instalments over ten years.

Corporation tax main rate is 25% where augmented profits exceed £250,000; small profits rate is 19% where profits are £50,000 or less; marginal relief applies between the limits.

Associated companies divide the £50,000 and £250,000 limits; companies under common control are counted, while dormant companies are generally excluded.

AIA gives 100% relief on most plant and machinery up to £1 million; main pool WDA is 18%, special rate pool WDA is 6%.

Full expensing gives 100% relief for new main-rate plant and machinery and 50% for new special-rate plant and machinery for qualifying companies.

Trading losses can be carried forward against total profits of the same company, subject to a £5 million deduction allowance plus 50% of remaining profits.

Group relief requires a 75% beneficial ownership relationship or a consortium relationship; losses can be surrendered between qualifying group companies.

A close company loan to a participator can trigger a 33.75% tax charge on the company, repaid when the loan is repaid; beneficial loans to employees follow benefit-in-kind rules.

Quarterly instalment payments can apply to large companies; the thresholds and instalment amounts depend on augmented profits and the number of associated companies.

VAT registration is required when taxable turnover exceeds £90,000 in any rolling 12-month period or is expected to exceed £90,000 in the next 30 days.

VAT deregistration threshold is £88,000; a business can deregister when taxable turnover falls below this threshold.

VAT rates are standard 20%, reduced 5% and zero 0%; exempt supplies are within VAT but carry no VAT and can restrict input tax recovery.

Input tax is recoverable on business purchases used for taxable supplies; blocked input tax includes business entertainment and most cars, unless exceptions apply.

VAT returns are generally quarterly and payment is due one month after the end of the VAT period; MTD for VAT requires digital records.

Place of supply for business-to-business services is generally where the customer belongs; business-to-consumer services often follow the supplier's establishment.

Option to tax makes supplies of interests in land taxable at 20%, enabling input tax recovery but affecting buyers and tenants.

SDLT applies to UK land transactions with residential and non-residential bands; shares are subject to stamp duty at 0.5% above the £1,000 threshold.

Statutory residence test: automatic UK residence can arise from sufficient days and ties; automatic overseas residence can apply with limited UK days and no relevant ties.

Remittance basis: non-domiciled individuals can be taxed on foreign income and gains only when remitted, subject to the remittance basis charge after seven years of UK residence.

Double taxation relief: credit for foreign tax is limited to the UK tax on the same income or gain; excess foreign tax may be carried forward.

UK permanent establishment: a fixed place of business or dependent agent can create UK corporation tax liability on profits attributable to the permanent establishment.

Non-resident CGT: disposals of UK land and property are within UK CGT; residential property disposals are reported and paid within 60 days of completion.

Transfer pricing: large UK companies must apply arm's length principles to transactions with connected non-UK parties, with documentation and exemption thresholds.

CFC rules can attribute profits of low-taxed controlled foreign companies to UK companies where the UK has significant influence and no exemption applies.

Withholding tax: UK companies may deduct tax from certain interest and royalties; treaty rates and domestic exemptions can reduce or eliminate the charge.

Tax planning uses legal arrangements consistent with legislation; tax avoidance uses legal arrangements that may defeat legislative intent; tax evasion is illegal.

GAAR can counteract abusive arrangements; DOTAS requires disclosure of avoidance schemes; accelerated payment notices can require payment before litigation.

Ethical threats to objectivity include self-interest, self-review, advocacy, familiarity and intimidation; safeguards include disclosure, independent review and refusing engagements.

Money laundering reporting: a tax adviser who knows or suspects money laundering must make a suspicious activity report to the National Crime Agency and avoid tipping off.

Relevant cash flows for after-tax decisions are incremental, future and cash-based; exclude sunk costs, allocated fixed costs and non-cash accounting entries.

Capital allowances change after-tax cash flows: AIA and full expensing accelerate relief, while WDA spreads relief and affects the timing of tax payments.

Business structure comparison should include income tax, NIC, corporation tax, dividend tax, pension contributions and the effect of associated company rules.

Exit planning compares share sale and asset sale: share sale may qualify for business asset disposal relief or investors' relief, while asset sale can create capital allowances and VAT effects.