Chapter 3 Flashcards
What is a partial exemption?
When a business sells both taxable and exempt goods input tax has to be calculated
What is blocked input tax?
when VAT can be reclaimed due to being used as genuine business expense
What is a margin scheme?
taxed on profit
What is the VAT retail scheme?
VAT should be recorded on every sale
What is not a valid vat invoice
pro forma
invoices containing only zero rated and exempt supplies
statement of accounts
Name 3 supplies which input vat can be reclaimed
standard
reduced rate
zero rated
can vat be reclaimed on employee entertainment
Only can reclaim the employees vat expenses
When should p11D be submitted by
By 6th July
When should Class 1a Ni Contributions be submitted by
By 22nd July if paid electronically or 19th July
When should Class 1b Ni Contributions be submitted by
By 22nd Ocotber
When should EPS be submitted
19th following end of each month
Payment date for payroll
22nd of each month if paid electronically or 19 otherwise
how to calculate fuel charge
fuel scale charge amount inc;uisve of vat / 1.2 0.2
368/1.20.2=61.33
Explain method 1 of reporting vat errors
If error is less than £50,000 and less than 1% of total amount then it can be reported using method 1
Explain method 2 of reporting vat errors
If error is over £50,000 and more than 1% of total amount then it has to be reported HMRC VAT Error correction team
Would vat on a credit note to a customer increase output vat or decrease
It would decrease it
