VAT

Question 1

can VAT be reclaimed on vehicles?

Answer 1

yes, other than cars used privately

Question 2

can input VAT be reclaimed on client entertaining?

Answer 2

no, unless it’s overseas customers

Question 3

when do you need to notify HMRC if you have to register for VAT under the historic test?

Answer 3

within 30 days

Question 4

when do you need to notify HMRC if you have to register for VAT under the future prospects test?

Answer 4

at the end of the 30 day period

Question 5

when is registration for VAT effective from under the historic test?

Answer 5

from the first day after the end of the month following the month in which the limit is exceeded

Question 6

when is registration for VAT effective from under the future prospects test?

Answer 6

immediately

Question 7

what is a substantial trader for VAT purposes?

Answer 7

traders with a VAT liability of >£2.3m

Question 8

what are the consequences of being a substantial trader?

Answer 8

you need to pay VAT bills using payments on account

Question 9

for substantial traders, when is their VAT payment due?

Answer 9

at the end of months 2 and 3 of each quarter with a balancing payment due at the end of month 4

Question 10

how much are the payments on account for a substantial trader?

Answer 10

1/24th of the annual liability for the previous year

Question 11

under the annual accounting scheme, when is the VAT return submitted?

Answer 11

within two months of the period end

Question 12

under the annual accounting scheme, when are the payments due and how much are they?

Answer 12

either:
9 payments at end of months 4-12 and a balancing payment along with the return (10% of last year’s liability), or
3 payments due at end of months 4, 7, 10 with a balancing payment along with the return (25% of last year’s liability)