ACCA TX-UK cheat sheet

Self Assessment filing deadline: 31 January following the end of the tax year for online returns; paper returns due 31 October after the tax year.

Payment dates for income tax under Self Assessment: payments on account due 31 January and 31 July; balancing payment due 31 January after the tax year.

Payments on account are each 50% of the prior year's net income tax liability, required where that liability exceeds £1,000 and less than 80% was collected at source.

Tax year runs 6 April to 5 April; a company's chargeable accounting period cannot exceed 12 months.

Penalties for late filing of a Self Assessment return: £100 fixed, then £10 per day after 3 months, then 5% or £300 after 6 and 12 months.

Penalties for late payment: 5% of unpaid tax at 30 days, 6 months and 12 months, plus daily interest.

HMRC can open a discovery assessment within 4 years of the end of the tax year; 6 years for careless error and 20 years for deliberate behaviour.

Appeals against an HMRC assessment go first to a statutory review, then to the First-tier Tribunal (Tax Chamber).

Taxpayers may register for Making Tax Digital; VAT-registered businesses must keep digital records and file via compatible software.

Income tax rates (non-dividend, non-savings): 20% basic, 40% higher, 45% additional; the personal allowance is reduced by £1 for every £2 of adjusted net income above £100,000.

Personal savings allowance: £1,000 for basic rate taxpayers, £500 for higher rate, nil for additional rate; savings starting rate of 0% applies to £5,000 of savings for those with low non-savings income.

Dividend nil rate band £500 (recent years); dividend rates 8.75% basic, 33.75% higher, 39.35% additional.

Trading income: cash basis available for unincorporated businesses below the turnover threshold; capital allowances and accruals otherwise.

Class 2 NIC is payable on self-employed profits above the small profits threshold; Class 4 NIC is charged at 6% (lower) and 2% (upper) on profits above the lower and upper profits limits.

Class 1 primary NIC for employees: 8% between primary threshold and upper earnings limit, 2% above; employer secondary NIC at 13.8% above secondary threshold.

Employment expenses are deductible only if wholly, exclusively and necessarily incurred in the performance of the duties.

Gift Aid donations extend the basic rate band by the gross donation; pension contributions under net pay arrangement reduce taxable earnings.

Individuals pay CGT at 10% (basic rate band available) and 20% (higher/additional), with residential property and carried interest at 18%/24%; annual exempt amount applies.

CGT computation: disposal proceeds less allowable costs (acquisition, incidental, enhancement) less annual exempt amount, then apply rates.

Business Asset Disposal Relief charges gains at 10% up to a lifetime limit of £1 million per individual.

Principal private residence relief exempts the main home, with the final 9 months always exempt; lettings relief now restricted to shared occupancy.

Inheritance tax is charged at 40% above the nil rate band (£325,000) and residence nil rate band (£175,000 where a main home passes to direct descendants).

Reduced IHT rate of 36% applies where at least 10% of the net estate is left to charity.

Potentially exempt transfers become exempt if the transferor survives 7 years; taper relief reduces tax on failed PETs between 3 and 7 years.

Chargeable lifetime transfers into trusts are immediately charged at 20% on the excess over the nil rate band; cumulation over 7 years applies.

Business relief and agricultural relief can reduce qualifying property by 100% or 50% for IHT purposes.

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

Marginal relief fraction = (upper limit − augmented profits) × (main rate − small profits rate) / augmented profits.

Augmented profits include exempt distributions from non-group companies; associated companies divide the thresholds.

Trading losses can be carried forward against total profits of the same company (subject to £5 million deduction allowance) or set against profits of the same accounting period.

Group relief allows surrender of trading losses between 75% group members; consortium relief requires at least 20% ownership.

Capital losses are offset only against chargeable gains; trading losses cannot be set against capital gains.

Capital allowances: annual investment allowance for plant and machinery, full expensing for new qualifying plant, writing-down allowance at 18% or 6%.

Research and development relief: SME scheme enhanced deduction or RDEC credit depending on company size and expenditure.

Quarterly instalment payments apply where corporation tax exceeds £1.5 million (divided by associated companies).

VAT registration is compulsory when taxable turnover exceeds £90,000 in any rolling 12 months, or when it is expected to exceed the threshold in the next 30 days.

Standard rate 20%, reduced rate 5%, zero rate 0%; exempt supplies give no input tax recovery.

VAT return periods are usually quarterly; returns and payment due one month and seven days after the end of the period.

Input tax on business entertainment and on cars (unless exclusively business) is generally blocked.

Partial exemption: recover input tax attributable to taxable supplies; de minimis limits allow full recovery where exempt input tax is below the threshold.

Cash accounting and annual accounting schemes are available for smaller businesses; flat rate scheme applies below the turnover limit.

VAT bad debt relief can be claimed six months after the due date of payment.

Stamp duty land tax is charged on land and buildings with progressive rates; shares are subject to stamp duty at 0.5% above £1,000.

PAYE and NIC are collected by employers through RTI, with payment due by the 22nd of the following month (19th if by post).