Chapter 6

Question 1

Why must the latest submission date of the VAT return be stated clearly to employees or clients?

Answer 1

This is to stop the chance of incurring any penalties

Question 2

If an accountancy practice is doing a VAT return for a client what must it do before submitting the return to HMRC ?

Answer 2

Get authorisation to submit from the client

Question 3

What are two examples of payroll legislation that changes each year ?

Answer 3

National minimum wage rate

National living wage

Question 4

A normal reason for VAT rates to change would be government policy but why would they want to change VAT rates ?

Answer 4

Increase and decrease consumer spending in the economy

Increase tax revenue for the goverment

Question 5

In what situation may an accountants integrity and objectivity be challenged when dealing with VAT ?

Answer 5

They may find themselves in a situation where they are pressured to allow irrecoverable VAT on the VAT return

Question 6

How can an accountant remain objective when dealing with VAT ?

Answer 6

They must not allow themselves to be influenced by other peoples opinions or by their own personal feelings

Question 7

How does professional competence and due care tie into dealing with VAT and VAT returns ?

Answer 7

It is important for accountants who are responsible for dealing with VAT to keep up to date with the relevant regulations and legislation

Question 8

What is CPD ?

Answer 8

Continued Professional Development