HND income tax報告Dear Jessie（第二篇）

1、Income Tax Outcome 1Rework Dear Jessie,It is my great honor to help you solve the problems. According to analyse your situation I decided write this letter that try my best to help you.Above all things, I found you did not know the difference between a contract of service and a contract for service.

2、 I made a form.Contract of service(employed)Contract for service(self-employed)A tax payer who is in the service of employer,employer should pay salary, pension and other profits for the employed staff. On the other hand, the employer should deduct tax by the PAYE System to the IRS.A tax payer who p

3、rovide service for the customer,He or she should deal with the tax of whole company or group. Otherwise, the self-employed person have not the fixed salary, that depend on their performance.Secondly, I want to talk of the criteria that would be used to decide whether or not you was employed by Abert

4、ay Hydro.Control-Decide your own decision. The taxpayer decides how, when and where the work is performed? This criteria is suits for your situation. On the other hand, you have less control, that only regarded for employed. Actually, you can choose accepting or rejecting appointments with clients,

5、so you are more likely to be self-employed.Financial risk-Financial risk in the work is burden by the taxpayer. This criteria is suits for your situation. Otherwise, you will be described as employed. Employees are not usually expected to risk their own capital. However, you have always provided you

6、r own equipment and material, these all belong to your capital. It seems like you are self-employed.Equipment-The taxpayer provided their own equipment. This criteria is suits for your situation. As for your situation, You has always provided your own equipment and martial. That is to say you are se

7、lf-employed.Work performance and correction-The taxpayer is required to take full or more responsibility for the work. This criteria is suits for your situation. You are have your own diary work. This means you are self-employed.Holidays and sickness-The taxpayer not go to work that he or she have n

8、o income. This criteria is suits for your situation. Hydro did not payoff any holiday pay or sick pay. That is to say, you should not paid for absence, so you are self-employed.Exclusivity-Only for a single customer. This criteria is suits for your situation. You can accept or reject client appointm

9、ents which you choose, so this is self-employed situation.Conclusion: You will be treat to be self-employed.Taxable personThirdly, I will explain who is a taxable person and why is the tax year important to them.non-UK residents(from UK sources)Trusts residentpartnersIndividualsTwo rules:The183-day

10、rule & The 91-day ruleTax year: Taxable persons in the UK are subject to income tax on income received in the year of 6 April to following 5 April.Why important: Different tax year different tax system.As for you, the tax year of you is 2003/04.Fourth, Taxable persons are appraised to income tax for

11、 the tax year under a system administration by the Commissioners or Board of Inland Revenue through Inspectors and Collectors of Taxes.Taxpayers are required to report all sources of income to the Inland Revenue. Sice 1997,taxpayers have been required to complete a Self-Assessment Tax Return(SATR) d

12、eclaring all taxable income and related expenses. Says the allowances and assessing the amount of income tax due. In reality this only applies to taxpayers who have income not taxed at source, or who are subject to higher rates of tax, or whose personal circumstances(in relation to liability to tax)

13、have changed from prior years.The SATR is due by 31st January following the end of the tax year.The taxpayer can have the Inland Revenue compute the income tax due if he/she submits the SATR by 30th September following the end of the tax year.As for your situation, you are a self-employed taxpayer,

14、and the Hydro have never deducted PAYE, so you are required to report all income and relevant allowances by yourself. You only earned 4,300 during 2003/04 and no other income you have got, so you just report 4,300 to the Revenue to the SATR due by 31st January 2005.In addition, interest is charged w

15、here payment of tax is not made by the due of date. A 5% surcharge will be applied if it is unpaid after 28 days after the due date with further 5% applied 6 months after the due date. Also there are series of penalties applied in relation to: Submission of SATR; Notification of chargeability to tax

16、; Maintenance of records; Falsification of documents.At the last, you wanted to know what if a taxpayer disagree with a decision made by the Inland Revenue and refuses to pay the tax that they claim is due.You can not refuses to pay the tax, but you can appeal to the General Commissioners or, in som

17、e cases, the Special Commissioners. Your appeal must reach the Revenue no later than 30 days from the date on the notice of decision. You can send the letter later, but you must give the good reasons, if the reasons are not accepted by the Revenue, the tribunals decision is then final. Then you are

18、asked to send your appeal to the Revenue Instead of directly to commissioners. In this way, it allows the revenue to reconsider your case and attempt to reach an agreement with you. If no agreement reached, the appeal will be dealt with the tribunals. This can be done at any time up to six years after the year of assessment The Revenue can alter assessment up to 20 years prior to the current tax tear.Interes