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Personal Tax (UK Income Tax) Flashcards

6 cards from real AAT L4 practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. Self-assessment tax returns for individuals are due to be filed online by:

    Answer: 31 January following the tax year end

    For online (electronic) filing, the self-assessment return must be submitted by 31 January following the end of the tax year (e.g., 31 January 2025 for 2023/24). Paper returns are due by 31 October.

  2. Payments on account for income tax are made on:

    Answer: 31 January and 31 July

    Two payments on account are due: the first on 31 January during the tax year, and the second on 31 July after the tax year end. Each is 50% of the previous year's income tax liability (after deducting tax deducted at source).

  3. A balancing payment for self-assessment income tax is due on:

    Answer: 31 January after the tax year end

    The balancing payment is the difference between the total income tax due and the payments on account already paid. It is due on 31 January following the tax year end — at the same time as the first payment on account for the following year.

  4. Property income for UK income tax purposes is:

    Answer: Assessed as rental receipts minus allowable property expenses, with the finance cost restriction on residential lettings

    Property income = rental receipts minus allowable expenses (repairs, insurance, management fees, letting agent fees). Finance costs (mortgage interest) on residential lets are restricted — relief is given as a basic rate tax reducer rather than a deduction.

  5. The trading income basis for an individual's self-employment is calculated as:

    Answer: Adjusted profit after adding back disallowable expenditure and deducting allowable reliefs

    Self-employment trading income starts with the accounting profit and adjusts: add back disallowable expenditure (e.g., depreciation, personal expenses, entertaining); deduct capital allowances; arrive at the tax-adjusted trading profit.

  6. The cash basis of accounting is available as an option for self-employed individuals with annual receipts below:

    Answer: £150,000

    From 2024/25, the cash basis is the default for sole traders and partnerships with receipts up to £150,000. Previously it was optional for those with receipts up to £150,000. Larger businesses can opt in.