Lesson Six

Question 1

Can you reclaim VAT on items that are exempt?

Answer 1

NO

Question 2

When a business sells both exempt and taxable items can they reclaim back vat?

Answer 2

Yes, only on the taxable items

Question 3

How does the dimimus limit work?

Answer 3

It for business that sells both exempt and taxable supplies but the taxable supply is more than the exempt so their business sells 80% taxable and 20% exempt.They can then reclaim on taxable supply only.

Question 4

What is the limit amount for dimimus limit?

Answer 4

If it does not exceed 625 pounds then you can reclaim.

Question 5

What is the meaning for blocked input tax?

Answer 5

You cant claim back vat

Question 6

What is another name for blocked input tax?

Answer 6

Business Expenses

Question 7

What can you not claim vat on?

Answer 7

Entertaining clients or potential clients

Question 8

If your client is from over seas, can you claim back vat?

Answer 8

Yes

Question 9

Can you claim back vat on employees?

Answer 9

yes

Question 10

What do you do when you have an event with both clients and staff?

Answer 10

Make sure you only reclaim vat on amount spend on staff only.

Question 11

Can we reclaim vat on a car?

Answer 11

No

Question 12

Can we reclaim vat on a van and lorry?

Answer 12

Yes

Question 13

Can we reclaim vat on a hired or leased car?

Answer 13

can reclaim on 50% of input vat

Question 14

If you have a taxi business can reclaim on those cars?

Answer 14

Yes

Question 15

What can you get penalty on ?

Answer 15

Careless error, late submission , fail to disclose business changes and inaccuracy

Question 16

If you are unsure about what to do what should you do?

Answer 16

Ask for help and guidance.