Making Tax Digital Quiz

When did the new rules for Making Tax Digital (MTD) apply?

• January 2018

• April 2019

• March 2020

• July 2021

What does HMRC state about special requirements for records?

• They are optional.

• They must be ignored.

• They must be met along with keeping business records.

• They are only for small businesses.

What determines your entitlement to bad debt relief?

• The outstanding amount of the supplies

• The total sales of the year

• The number of customers

• The amount of profit made

What happens if you receive a part payment for the debt?

• You can only claim a refund on the unpaid VAT

• You can claim the full VAT amount

• You cannot claim any VAT

• You must pay additional VAT

What happens if you default during the 12-month surcharge period?

• The surcharge period is reduced by 6 months

• You may have to pay an extra amount on top of the VAT you owe

• You receive a tax refund

• The surcharge period is canceled

Who will write to you explaining any surcharges you owe?

• Your accountant

• HMRC

• The bank

• Your employer

What does HMRC stand for?

• Her Majesty's Revenue and Customs

• High Management Revenue Council

• Her Majesty's Royal Commission

• High Monetary Regulation Committee

What is the duration of the initial surcharge period?

• 6 months

• 12 months

• 18 months

• 24 months

What must you do to avoid a surcharge if you have no tax to pay?

• Submit a return on time

• Request an extension

• Pay a small fee

• Ignore the deadline

What happens if you are due a VAT repayment and submit a late return?

• You will still have to pay a surcharge

• You will not have to pay a surcharge

• You will receive a penalty

• You will lose the repayment