R03 Self assessment: free practice questions

1. Question 1 of 5

   Ivan, who doesn't normally file a return, receives untaxed rental income in 2026/27. By when must he tell HMRC?

   Option A: 5 October 2027Option B: 31 October 2027Option C: 31 January 2028Option D: 5 April 2027

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   The answer is A: 5 October 2027

   Anyone not already in self assessment must register by 5 October after the end of the tax year in which the income or gain arose. Failing to notify can lead to a penalty.

   Why the other options are wrong

   B

   That's the paper filing deadline.

   C

   Notifying chargeability comes earlier than the filing date.

   D

   He has until 5 October after the tax year ends.

2. Question 2 of 5

   Which of these is included in payments on account?

   Option A: Capital gains tax on share disposalsOption B: Student loan repaymentsOption C: Class 4 NICs on trading profitsOption D: Voluntary class 2 NICs

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   The answer is C: Class 4 NICs on trading profits

   Payments on account cover income tax (beyond tax deducted at source), class 4 NICs and the high income child benefit charge if not collected by PAYE. CGT, voluntary class 2 and student loans go in the balancing payment.

   Why the other options are wrong

   A

   CGT is paid with the balancing payment, not on account.

   B

   Student loan repayments aren't part of payments on account.

   D

   Class 2 is paid with the balancing payment.

3. Question 3 of 5

   Outside MTD, what are the minimum total penalties for a return that is more than twelve months late, assuming the failure isn't deliberate?

   Option A: £1,000Option B: £400Option C: £700Option D: £1,600

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   The answer is D: £1,600

   £100 fixed + £10 × 90 days (£900) + £300 at six months + £300 at twelve months = £1,600 at least.

   Why the other options are wrong

   A

   The daily penalties alone can reach £900, plus £100 and two £300 penalties.

   B

   That only counts the £100 and one £300 penalty.

   C

   That leaves out the £900 of daily penalties.

4. Question 4 of 5

   Which statement about an online time to pay arrangement is correct?

   Option A: It can only be set up after penalties have been chargedOption B: It's for debts under £30,000, payable over up to 12 monthsOption C: It's available for any amount over up to five yearsOption D: It stops interest being charged on the tax owed

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   The answer is B: It's for debts under £30,000, payable over up to 12 months

   Individuals and businesses owing less than £30,000 may set up a time to pay arrangement online, paying monthly over up to twelve months. It can avoid late payment penalties, but interest still runs.

   Why the other options are wrong

   A

   Setting one up early can avoid penalties.

   C

   Online arrangements need debts under £30,000 and run up to 12 months.

   D

   Interest is still charged.

5. Question 5 of 5

   Which statement about making tax digital (MTD) for income tax from 6 April 2026 is correct?

   Option A: It applies to sole traders and landlords with qualifying income over £50,000Option B: It applies to partnerships and companies as well as individuals, from the same dateOption C: It tests profits rather than incomeOption D: It changes the dates when tax is paid

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   The answer is A: It applies to sole traders and landlords with qualifying income over £50,000

   From 6 April 2026, self-employed people and landlords with combined gross income over £50,000 must keep digital records and send quarterly updates. Those over £30,000 join from 6 April 2027. Payment dates are unchanged.

   Why the other options are wrong

   B

   MTD doesn't currently apply to partnerships or companies.

   C

   It's based on income, not profit.

   D

   MTD doesn't change payment dates or amounts.

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