Lesson Three

Question 1

How long back must records be kept?

Answer 1

6 years

Question 2

What type of company does HMRC inspect more?

Answer 2

Big companies

Question 3

How long will the inspection take?

Answer 3

Depends. Several hours or days.

Question 4

What happens if a material error is made?

Answer 4

Take action to recover lost tax and issue penalty.

Question 5

What happens when fraud is discovered?

Answer 5

It is investigated by National Crime Agency (NCA) and criminal charges.

Question 6

What records does HMRC require us to keep?

Answer 6

Sales , purchases and VAT account.

Question 7

What is the diffrence between vat invoice and the simplified one?

Answer 7

simplified has no customer name and address and only shows gross.

Question 8

What is a pro forma invoice?

Answer 8

An invoice that is issued so the customer pays in advance .

Question 9

Is proforma invoice a vat invoice?

Answer 9

No

Question 10

How much is the amount to issue a simple vat invoice?

Answer 10

The amount must be 250 pounds including vat

Question 11

In how many days does an invoice usually get paid?

Answer 11

30 ,60 or 90 days .