Tax Processes for Businesses - Reference Material Quiz

What is the standard rate of VAT for taxable supplies?

• 0%

• 5%

• 20%

• 15%

What is the VAT registration threshold?

• £80,000

• £83,000

• £85,000

• £90,000

When must a business notify HMRC for compulsory VAT deregistration?

• Within 30 days of the business ceasing to make taxable supplies

• Before the end of the 30 day period

• Within 30 days of the end of the month threshold was exceeded

• Date request received by HMRC

When does VAT registration become effective from when using the future test?

• First day of the second month after threshold exceeded

• From the start of the 30 day period

• Date of cessation

• Agreed later date

What is the penalty for a non-deliberate failure to register for VAT within 12 months of tax being due, if unprompted?

• 0-30%

• 10-30%

• 20-70%

• 30-100%

How long does a business have to notify HMRC of a change in bank account details for VAT registration?

• Within 14 days in advance

• Within 30 days

• Within 12 months

• No notification is required

What is the record retention period for keeping business and VAT records?

• 3 years

• 5 years

• 6 years

• 10 years

What is the penalty for failure to keep business and VAT records?

• £100

• £250

• £500

• £1000

What must a full VAT invoice include regarding the amount payable?

• The amount payable including VAT in sterling only

• The amount payable excluding VAT in any currency

• The amount payable including VAT in any currency

• The amount payable excluding VAT in sterling only

What is required on a simplified VAT invoice for supplies under £250?

• Customer's name and address

• The unit price of countable elements

• Supplier's name, address, and VAT registration number

• The total amount of VAT chargeable in sterling