F Rules Flashcards
VAT is?
An indirect tax and is administered by HMRC
Exempt supplies for VAT purposes?
Land and buildings
Financial services and insurance
Educational services
Are wages and dividends relevant for VAT?
No
Historical test for compulsory registration?
From the first day of the second month after the limit is exceeded.
Future prospects test for compulsory registration?
From the date the grounds first existed, i.e. the start of the 30 day period.
When may a taxable supplier voluntarily deregister?
If taxable supplies in the next 12 months will be £83000 or less
How long does HMRC have to deny or modify the group registration application?
90 days
What happens with disallowed input VAT for income and corporation tax?
Ranks as a deductible expense for income tax and corporation tax
What happens with disallowed input VAT on capital items qualifying for capital allowances?
Will rank as part of cost for capital allowance purposes,
The actual tax point (when goods are received) is the basic tax point unless?
Payment is received before the basic tax point; or
An invoice is issued before the basic tax point; or
An invoice is issued within 14 days after the basic tax point.
Provided there is some business use of a car? (Input VAT)
The full amount of input VAT in respect of repairs can be reclaimed.
When road fuel is provided free of charge by the business for private use of employees?
All input VAT (for both private and business mileage) can be recovered, but the private use element is then normally accounted for by way of an output VAT purposes is a scale charge for each tax period.
Where the full cost of private use fuel is charged to an employee or director?
The business can reclaim the input VAT but accounts for output VAT on the charge to the employee or director (i.e. instead of the scale charge).
When are VAT impairment losses are given in respect of an impairment cost if?
The debt has been written off in the accounts
At least six months has elapsed since the later of the date of supply and the due date for payment
Where is output VAT charged?
On imported goods
When must VAT returns be submitted?
Within one month and seven days of the end of the relevant VAT quarter, to avoid penalties
Failure to retain appropriate records for the required time for VAT?
Will attract a penalty not exceeding £3,000
When can suppliers issue less detailed tax invoices?
Of the VAT inclusive value does not exceed £250
What is included on a less detailed VAT invoice?
Date of delivery
Name, address and VAT registration number
Suitable description of each type of goods
Rate of VAT
Total amount including VAT
What is output VAT due on?
Sales of goods (including non-current assets) and services in the UK
“Imports” of goods and services from outside the UK
Taxable supplies of goods and services taken from the business for personal use.
What is input VAT due on?
Goods (including non-current assets) and business services acquired in the UK
Goods and services imported into the UK
Goods and services taken from the business for personal use provided output VAT was paid on the values taken.
When is an error in VAT tax period regarded as immaterial?
Higher of £10000 and 1% of turnover up to a limit of £50000
If a penalty threshold of four points is reached?
A £200 penalty is then charged
What do subsequent late VAT returns also incur after the £200 penalty?
Subsequent late VAT returns also incur a £200 penalty
When do penalty points normally expire?
After two years
