VAT Flashcards
What is the basic tax date for goods not on sale or return?
When goods are dispatched/made available to customer
What is the basic tax point for goods on sale or return?
The earlier of adoption or 12 months from removal
What is the actual tax point if before basic tax point?
Date invoice issued or payment made or the invoice date if issued within 14 days after the basic tax point
True or false: you treat deposit payments as separate tax points
True
On what items can you not recover input VAT?
Cars (unless used exclusively for business)
Business entertaining (except staff entertainment and foreign customer entertainment)
Non business items
Items without a VAT receipt
Fuel on pool cars
Capital purchases for business use
When must you notify that you require VAT registration based on the previous 12 months?
And
When does it take effect?
Within 30 days of the end of the 12 month period
Takes effect from the first day after the end of the month following the 12 month period
By when must you notify about VAT registration if you beleive you will exceed the limit in the next 30 days?
And
When does registration take effect?
Notification required by the end of the 30 period (in which you think you will exceed).
Registration takes effect from the beginning of the 30 days
True or false: A gift of service is a taxable supply
False
Within what time period since the time of registration must goods still be held in the business?
4 years
True or false: the value or an item for tax purposes is the VAT exclusive amount it would cost for the person supplying the asset to purchase an identical replacement
True
Over what earnings threshold must a company be to make VAT payments on account?
£2.3m
What is the payment schedule for companies making VAT payments on account?
1/24 of PY total VAT liability paid at the end of 2nd and 3rd months of the quarter
Balancing payment of the remainder of this years liability due at the end of the month following the quarter
What is the max. value of a simplified invoice?
£250
How are VAT payments made in the annual accounting scheme?
Either
9 payments at the ends of months 4-12 of 1/10 of the previous 12 month liability followed by a balancing payment 2 months after year end
Or
3 quarterly payments of 25% at the ends of months 4,7 and 10 (followed by same balancing payment)
What is the maximum earning threshold for the annual accounting scheme?
Less than 1.35m
What is the earnings threshold for the cash accounting scheme?
Less than 1.35m
What is the earnings threshold for the flat rate scheme and after what total turnover do you have to leave?
Less than 150k
After 230k
What fixed percentage do limited cost traders use under the fixed rate VAT scheme?
16.5%
Who is not required to file full tax returns?
An employee who is not a director, a sole trader with turnover less than 85000 and pensioners
How long do non personal income and capital gains tax records have to be kept?
5 years from the 31 January after the tax year
For how long do personal tax records have to be kept?
1 year from the 31 January after the end of the tax year
How long does a taxpayer have to amend their tax return?
12 months from the 31 Jan after the tax year
How long does a tax payer have to amend their tax return due to overpayment relief or overcharged tax?
Within 4 years of the end of the tax year
How long does HMRC have to amend tax return errors?
9 months from the actual filing date
