Self Assessment & VAT

Question 1

Tax Returns

Answer 1

Tax returns must be filed by 31/1/20 if online or 31/10/19 if paper

Question 2

Tax Returns Penalty

Answer 2

The penalties for failing to file tax returns is £100 for not submitting. If it is more than 3 months late a £10 daily charge is applied for the next 90 days. At 6 months it moves to £300 or 5% of the bill whichever is higher

Question 3

VAT

Answer 3

Vat registration occurs if a business makes taxable supplies of £85k or more. The VAT paid is based on the difference between VAT input and VAT output. Where there is an excess of input over output, VAT is reclaimed

Question 4

VAT Returns

Answer 4

Vat returns are usually submitted every 3 months and penalties are imposed if they are late, wrong or not registered

Question 5

Flat Rate VAT

Answer 5

To qualify for flat rate vat, the business must have e an annual turnover of no more than £150k excluding VAT. VAT is charged at the normal rate and a VAT receipt is issued.

Question 6

Taxable Supplies

Answer 6

Supplies of goods or services hat carry VAT are known as taxable supplies.