Lesson Two Flashcards
What is the historic test aka past turnover measure?
Observe the last twelve months and observe the monthly turnover and if at any time it exceeds threshold then you are required to register for Vat within 30 days or face a fine.
What is the future test aka future turnover measure?
When you expect to go over the threshold in the next 30 days and therefore register.
For the historic test when do you notify HMRC ? and when do you register?
notify within 30 days and register
What is Making tax digital?
A software to help send VAT to HMRC digitally.
How do you avoid VAT registration?
Monitor income and do not exceed 85k
When can you deregester for VAT?
When your turnover is below 83k
What is charging customers cash in hand?
Its a tax evasion and illegal
What happens if they have to register but does not ?
fine and charged for all uncollected vat on items sold.
What do you do if you have a good one off month?
notify HMRC about it in 30 days if not have to register then deregister.
When do you cancel VAT reg?
When business closes, stops taxable supplies or taken by another business.
