TPFB (exam question cards)

Question 1

If you want to find out how a transaction is treated for VAT your first action should be to ring the HMRC helpline

Answer 1

False, the correct order of action is to:
- Consult HMRC website
- Ring HMRC helpline
- Write to HMRC

Question 2

A trader who makes wholly 0 rated supplies can apply to be exempt from registration

Which of the following options may be a valid reason why the business might prefer NOT to be registered

A. It makes the business’s prices cheaper for non - registered customers.
B. If the business has a very low level of input VAT.

Answer 2

Answer is B