AAT L4 Personal Tax (UK Income Tax) 2

Question 1

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

Accepted Answer

31 January following the tax year end

Answer

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.

Question 2

Payments on account for income tax are made on:

Accepted Answer

31 January and 31 July

Answer

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).

Question 3

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

Accepted Answer

31 January after the tax year end

Answer

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.

Question 4

Property income for UK income tax purposes is:

Accepted Answer

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

Answer

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.

Question 5

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

Accepted Answer

Adjusted profit after adding back disallowable expenditure and deducting allowable reliefs

Answer

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.

AAT Level 4 Practice Test

AAT Level 4 Practice Test

AAT L4 Personal Tax (UK Income Tax) 2