Recap on lesson 1 VAT

What is the VAT registration threshold amount this year?

• £80,000

• £81,000

• £85,000

• £83,000

What is the deregistration VAT limit this year?

• £85,000

• £80,000

• £81,000

• £83,000

How many VAT registrations can a sole trader have?

• More than one if he asks HMRC permission

• There is no limit

• 2

• 1

What can you apply for if you temporarily exceed the VAT threshold?

• Extension

• Exception

• Exemption

• Extraction

What kind of company can apply for exemption from VAT registration

• One that only sells reduced rated goods

• One that only sells zero rated goods

• One that only sells chargeable goods

• One that only sells exempt goods

How often should turnover be checked when using the historic test?

• Just before a VAT return is completed

• When a VAT inspector visits

• Once every 6 months

• End of every month

Once the threshold is exceeded using the historic test how long do you have to register with HMRC?

• 30 days

• 1 month from end of the month in which threshold is exceeded

• 30 days from end of month in which threshold is exceeded

• 1 month

If using the historic testing when should VAT be charged from?

• Date you exceed the threshold

• It should be backdated by 30 days

• Date of registration

• 1st day of the month following the 30 day registration period

If you use the future test, the company will go over the threshold....

• If taxable turnover is over £85,000 in past 12 months

• If taxable turnover is over £85,000 in next 30 days

• If taxable turnover is over £85,000 by the end of the financial year

• If taxable turnover might go over the £85,000 threshold soon

As an accountant, what threat would you face if offered a £500 gift to hide a VAT liability?

• Self interest

• Self Principle

• Advocacy

• Competency