WorksheetsIndirect Tax 2
Total questions: 10
Worksheet time: 10mins
A purchase invoice for taxable supplies has just been processed. What will be the effect on the VAT?
Input tax will increase
Input tax will decrease
Output tax will increase
Output tax will decrease
Bronwyn has received a credit note from a supplier. As a result of this, will Bronwyn have to pay more or less VAT to HMRC?
More VAT payable
Less VAT payable
When a trader claims VAT for bad debt relief, the VAT on the bad debt will result in:
An increase in the output VAT
A decrease in the output VAT
An increase in the input VAT
A decrease in the output VAT
A customer orders and pays a 10% deposit with an order she placed on 13 Jul. The goods are delivered on 20 Jul. The business invoices the customer on 30 Jul and receives the balancing payment on 4 Aug. Select the correct tax point(s).
20Jul/30Jul
13Jul/4Aug
13Jul/20Jul
13Jul/30Jul
Ruud's business is claiming bad debt relief of £380. This amount will be included in which box of the VAT return?
Box 1
Box 2
Box 3
Box 4
Hermione submits her VAT return for the period 30 June. She pays by online bank transfer. What is the latest date her return and payment should reach HMRC?
30 June
31 July
7 August
10 August
A trader understated their output tax by £300 on the last return. Which box will they correct this error in when they submit their next return?
Box 1
Box 2
Box 3
Box 4
A business wishes to write off a bad debt of £4,238.40 inc VAT. The business has already written this off in their accounts. How much bad debt relief can they claim?
£847.68
£3,532.00
£706.40
£4,238.40
Decide whether the following item will be a debit or a credit entry in a business's VAT account: VAT on cash sales
Debit
Credit
Decide whether the following item will be a debit or a credit in a business's VAT control account: Fuel scale charge
Debit
Credit
