F Reliefs Flashcards
The total cost of fuel distinguishes?
No distinguishment between personal and private use
To have points rest to zero?
Submit four consecutive VAT returns on time
When a car is used for private purposes, even if it has employment usage (VAT claimance)?
NO VAT CAN BE CLAIMED
When is VAT charge payable for fuels costs for an employee where there is some private use of the vehicle?
If employee does not reimburse the employer
If historic test for VAT met on 31 October 2023?
Notified HMRC by 30 November 2023
Registration effective 1 December
Entertaining UK customers and VAT?
Is deducted from VAT
What is not included on a VAT invoice?
The customer’s VAT registration number
VAT invoice request and retailers?
Retailers need only issue a VAT invoice if customer requests one
Refunds of VAT time limit?
4 years
Advantage be if businessman sold her entire business as a going concern for VAT purposes?
Would not have to pay output VAT in respect of the sale
Amount of each payment on account which Alessandro will have to make towards his VAT liability for the year ended 31 March 2024? (annual accounting scheme)
Total VAT liability for previous yeasr * 10%
Advantage of annual accounting scheme?
Less administration
Smaller more regular payments
If turnover is increasing, current VAT instalments are based on the lower, previous year’s VAT liability
Advantage of cash accounting scheme?
It improves cash flow where customers are late payers.
It gives automatic relief for impairment losses.
It can be used along with the annual accounting scheme
Advantage of flat rate scheme?
It eliminates the need to keep detailed records of purchases and sales. The business need only maintain a VAT account in its general ledger
Disadvantages of VAT scheme?
It will not be beneficial for businesses with large amounts of input VAT to recover
It will not be beneficial for businesses with turnovers substantially comprised of zero-rated or exempt sales
When goods are exported from the UK by a registered UK taxable supplier?
This is zero rated supply
VAT on the export of services delivered outside of the UK? (is it charged)?
No
What can VAT registered exporters recover?
UK input VAT attributable to the exported goods and services
Where is output VAT charged in imports and exports?
Imported goods
What happens with the import VAT?
It is declared as output VAT, but can be reclaimed as input VAT return on the same VAT return
Only time when output VAT and input VAT are not equal in terms of import VAT?
If a business makes exempt supplies
Can input VAT be reclaimed on exempt supplies?
No
Exports to countries?
No VAT
Imports from countries?
Input and output VAT net each other off, unless exempt supplies
Is fuel scale charge input or output VAT?
Output VAT
How many VAT returns are charged for each tax period in group registration?
One VAT return
What are conditions to register in group registration?
One of the companies controls each of the others
Each of them has an established place of business in UK
What are consequences when registering in group registration?
Each VAT group must appoint a representative member which accounts for the group’s output VAT and input VAT
All members are liable
Advantages of group VAT (external transactions)
Group need only account for VAT on external group sales and acquisitions
Zero rated company output and input VAT recovery in group registration?
Only input VAT
Standard company output and input VAT recovery in group registration?
Output and input VAT
How much VAT be can be claimed for legal fees more than 6 months prior to registration?
No VAT can be claimed
How much VAT be can be claimed for legal fees at or less than 6 months prior to registration?
Input VAT can be claimed
Staff and overseas customers VAT?
No input VAT
Entertaining (except staff and overseas customers) VAT?
Input VAT
Basic tax point for a supply of goods?
The time the goods are made available to the customer
Calculated value added tax payable (VAT return)?
Output VAT - input VAT (zero rated supplies not included)
Food for human consumption?
Zero-rated
Sewerage services?
Zero-rated
Books, newspapers, printed music and maps?
Zero-rated
New residential land and buildings?
Zero-rated
Transport of people by any vehicle for 10 or more passengers?
Zero-rated
Travel services where travel destination is outside the UK?
Zero-rated
Air navigation, port pilotage, salvage and towage services?
Zero-rated
Repair and maintenance services of ships and aircraft?
Zero-rated
Lifeboat and sea rescue services?
Zero-rated
Drugs, medicines and aids for handicapped people?
Zero-rated
Specified supplies of goods to or by charities?
Zero-rated
Children’s clothing and footwear?
Zero-rated
The export of goods (including related transport costs) to all customers located in countries outside the UK
Zero-rated
Land and buildings
Exempt
Financial services
Exempt
Insurance
Exempt
Educational services
Exempt
Health and welfare services provided by government or other bodies on a non-profit-making basis
Exempt
Supply of goods or services by charities for charitable fund raising events
Exempt
Wages and dividends
Outside the scope
Transfer of goods arising from a business being sold or otherwise transferred as a going concern
Outside the scope
Certain gifts of goods and services
Outside the scope
Exports of services to all customers located in countries not within the UK
Outside the scope
Entertaining UK customers?
Can’t be recovered as input tax
What impairment losses are deducted in a VAT return?
Incurred at least six months
Calculate VAT under flat rate scheme?
Output VAT (inclusive) * flat rate percentage
Supply of services within 6 months of registration?
Included in input VAT
Supply of services more than 6 months of registration?
Not included in 6 months
If error doesn’t exceed £10000 or 1% of turnover (up to a limit of £50000)?
It is immaterial
Where refunds of VAT arise from error claims, where can the claim only relate to?
Overpayments of VAT made in the four years preceding the making of the claim for a refund
Where a new car is leased and input VAT?
50% of the input VAT on the lease charge is irrecoverable
Goods (i.e. inventory and non-current assets) acquired four years or less prior to registration
Included in input VAT
Entertaining overseas customers?
Can be recovered by input tax
What does cash generally mean?
Always date of payment determines what it’s dealt with
What is meant by the basic tax point?
When the service is complete OR when goods are dispatched to the customer
