income tax的报告.docx

Income Tax SummaryThe report is to write about the problems faced Jesse, researchers give him Jesse suggestions to help solve this problem. The researchers in this report will be very clearly told Jesse between the different service contract, service contract, Jesse realized the difference between employment and self, and told her to decide to accept or reject their advantages and disadvantages. She is their proposal. Will report to Jesse to help him solve her problem. Tell her why tax year taxable person important to you? Self-assessment, what does that mean? If a taxpayer does not agree with the decision by the Inland Revenue Department, refused to pay taxes, they claim to be due to this?IntroductionThis report will describe the difference between a service contract and service contract. Why their tax . This self-assessment. If a taxpayer does not agree with this decision by the Inland Revenue Department, refused to pay taxes, Jesse describe their own views and opinions in the report.Section1The different between a contract of service and a contract for service. A contract of service (employed): when a taxpayer works as an employee and is in the service of an employer. In other words, she personally work under the control of someone and do not run the risks of having a business herself. Then its employers responsibility to deduct tax & NICs from her pay under PAYE and pay it to the Revenue.A contract for service (self-employed): when she works as a self-employed who is providing services to a client. In other words, she is in business on your own account and bear the responsibility for the success or failure of that business. Then she is responsible for her own tax and NICs to the Revenue.Section2The criteria that would be used to decide whether or not employed by Abertay Hydroemployee must be subject to a certain degree of control by the engager although control need not be exercised in practice. She can accept or reject client appointments as she choose. It seems that she like self-employed.Financial risks: The more that Jesse bear the financial risk in the work, the more likely to be considered as self-employed. Employees are not usually expected to risk their own capital. The risk of making a loss is a very strong indicator of self-employment and can be decisive on its own. She has always provided her own equipment and material. It seems like a self-employed.Equipment: If she is required to provide some or all of the equipment needed to do the work, she is more likely to be considered self-employed. Where a worker is provided with the necessary equipment, materials and so on by the engager that points to employment. Because she has always provided your own equipment and material, it likes self-employed.Work performance and correction: If a person is required to take full responsibility for the quality of work done and/or to carry out remedial work in her own time and at his own cost, she is more likely considered to be self-employed. An employee will normally be paid for any time required to make corrections to his work. She is responsible for keeping her own diary.Holidays and sickness: If a person is not paid for absence. The presence, in a contract, of benefits such as paid leave, membership of firms pension scheme, right to car park，space, canteen facilities and so on is a good indicator that an employment relationship exists. The Hydro did not pay Jesse any holiday pay and sick pay.In conclusion, Jesse is self-employed.Section3taxable person and tax yearTaxable person: Individuals, partners and trusts resident in the UK are usually liable to income tax on their UK and world income. Non-UK residents are also liable to income tax on their UK income. Non-UK ordinarily or domicile resident may not have to pay income tax on income from outside the UK; They have to pay income tax if they bring this income in the UK or spend it in UK.Two rules governing residency:The 183-day rule: A person who spends 183 or more days in the UK is always regarded as resident in the tax yearThe 91-day rule: A person who has established permanent residence abroad will be regarded as resident in tax year in the UK if he visits the UK for 91days or more in the tax year.Tax year: The tax year starts on 6 April in one year and ends on the 5 April in the next year. Tax years are usually referred to by the years they span. The tax year 2007/08 means the 12 months from 6 April 2007 to 5 April 2008. Taxable income has to be allocated to a tax year in order to be taxed.So Jesse know which year her income falls into. Tax rates, allowances, limits, filing deadlines, payment deadlines and other rules are set for each tax year. So that she know which set of rules apply.Section4Since 1997, the taxpayer must complete a self-assessment tax returns (SATR) announced that all taxable income and related expenses, collection of the relevant allowances and evaluation of the number of income tax due. In reality, this is only applicable to those sources of income is not taxed or higher tax rates, or from the personal situation of a few years ago, the tax burden on the taxpayers. Self-assessment: is a way of establishing what tax is due, and collecting the tax. It does not affect the amount of tax you pay. It is the process or system by which people who normally need to pay some tax directly to the Revenue each year notify the Revenue of their income and related expenses, relevant allowances claimed, the amount of tax due, and pays their tax.Usually if she has income not taxed at source e.g. self-employed, income from property etc. she is a higher-rate tax payer. E.g. company director. She has change in your personalcircumstances in relation to tax liability since last year. E.g from employee to self-employed.Generally, SATR forms are sent out by the Revenue in early April following the end of the tax year to which they apply.If Jesse dont get one and she thinks she should, ask for it.She must send back the completed SATR to the Revenue if she has received the form:She can file you return by paper or by online form.There are different deadlines.Deadlines: Online: By Jan. 31 for the previous tax year.On paper: Oct. 31 if she want the Revenue to calc. the tax due for her.Late return will incur penalties. E.g. 100 and interest on overdue taxIf she dont send in a tax return at all, HMRC can decide what tax they think is due and collect it as a debt.Section5What if a taxpayer disagrees with a decision made by the Inland Revenue and refuses to pay the tax that they claim is due?In cases where income tax is not deducted from income at source, payment of income tax is due in three installments. These are: A payment on account of 50% of the estimated liability on 31 January in the tax year; A second payment on account of 50%on 31 July followingst the end of the tax year; Any balancing payment, along with the SATR, on 31 January following the end of the tax year.To appeal means to send formal (written) notice to the Inland Revenue that Jesse disagree with a decision which they have made in her case. An appeal may be settled by negotiating and reaching agreement with the Inland Revenue or, if this cannot be done, by having the case heard and decided by the General or the SpecialCommissioners. Its not limited to tax assessment.By whom: Anyone who receives a decision from the Revenue has a right of appeal. Or an authorized professional adviser.To whom: The appeal is to the General Commissioners or, in some cases, the Special Commissioners. They are completely independent of the Revenue. Their job is to look objectively and impartially at the facts of each case brought before them, to apply the law to those facts and to decide whether the original decision was right or wrong. They are either legally qualified for the role (i.e. special commissioners) or advised by a qualified clerk (i.e. general commissioners).Interest is charged on overdue tax. In addition, a 5% surcharge will be applied if its still unpaid