VAT - Future Prospects Test

Question 1

How often should the future prospects test be performed?

Answer 1

Constantly - basically daily

Question 2

What is the future prospects test?

Answer 2

The trader looks forward and sees if taxable supplies will exceed the registration limit in the next 30 days

Question 3

If taxable supplies exceed the registration limit in the next 30 days, when should the trader notify HMRC by?

Answer 3

By the end of the 30 day period, which starts on the date the trader became aware the threshold would be exceeded

Question 4

If taxable supplies exceed the registration limit in the next 30 days, when is VAT effective?

Answer 4

Immediately - the date the trader became aware the threshold would be exceeded

Question 5

When does a trader not need to register?

Answer 5

If the business only makes zero-rated supplies

Question 6

What does taxable supplies mean?

Answer 6

All sales excluding:
- VAT
- exempt supplies
- supplies outside the scope of VAT
- sales of capital assets