Matilda has been a VAT-registered trader for a number of years and has recently purchased various items for use in her trade. Select the item on which Matilda cannot recover the input tax.

Bob, who is not registered for VAT, has just completed 12 months' trading, the turnover details for the past year being as follows: Exempt supplies £28,000; Standard-rated supplies £58,000; Zero-rated supplies £33,000. Which of the following options correctly identifies Bob's liability to register for VAT?

Charlene, a VAT-registered trader, invoices Bronco Ltd in November 2024 for standard-rated supplies of £1,000, excluding VAT. The following settlement discounts are offered: payment within 7 days 10%; 14 days 5%; 21 days 2.5%. Bronco Ltd, whose normal credit term is 21 days, agrees beforehand to settle the invoice within 14 days, but actually takes 28 days. How much VAT is Bronco Ltd required to pay?

Viking Raiders Ltd began trading on 1 January 2024. Details of the company's recent taxable turnover are listed for each month of 2024 and 2025 up to April 2025. By what date must Viking Raiders Ltd notify HMRC of its liability to register?

Paint Ltd incurred the following capital expenditure (including VAT): New car for salesman £12,810 (80% business use); New motor van £9,450; Second-hand container lorry £23,100. How much VAT can be reclaimed in respect of the above?

Tariq ordered some goods from Rumpole Ltd, which issued a VAT invoice on 1 February. As payment for the goods, Tariq sent a cheque which Rumpole Ltd received on 3 February. The goods were dispatched on 8 February and received by Tariq on 10 February. Rumpole Ltd is not a member of the cash accounting scheme. Which of the following options is the tax point for the supply?

Quentin, who is registered for VAT, supplies computer hardware and related support services. On 28 March 2025 he gave a new laptop to his sister. The laptop cost the business £2,500 (excluding VAT) in January 2025 but the same model could have been purchased for £2,000 on 28 March 2025 (excluding VAT). How much output VAT should Quentin include in his VAT return in respect of the above transaction?

Valerie is a sole trader running two separate businesses — a wholesale fabric business and a clothes retail business. She is also senior partner in a firm of interior designers. All three businesses have a taxable turnover in excess of £100,000. What is the maximum number of VAT registrations to which Valerie will be a party?

Cross plc issues an invoice for standard-rated goods in February 2025 as follows: Goods excluding VAT £1,800; Less trade discount £(180); Cash discount (only available if the invoice is settled within 30 days) £(108); Cash to pay within 30 days £1,512. How much VAT will be paid overall if the customer pays within 30 days?

Priscilla started trading in the winter of 2022 but did not register for VAT because she expected that her turnover would be below the registration limits. On 31 May 2024 she realised that her future taxable turnover would exceed £90,000 in the next 30 days alone. By what date must Priscilla notify HMRC that she is liable to be registered for VAT?

Priscilla started trading in the winter of 2022 but did not register for VAT because she expected that her turnover would be below the registration limits. On 31 May 2024 she realised that her future taxable turnover would exceed £90,000 in the next 30 days alone. From what date must Priscilla charge VAT on her taxable supplies?

Paola, who is registered for VAT, runs a chauffeur-driven car hire service. In the quarter ended 31 March 2025 she lent a car and chauffeur to her cousin, to drive him to the airport. In the same quarter Paola arranged for a car and chauffeur to drive her to the church for her wedding. Which of these, if any, will be treated as a supply of services for VAT purposes?

Diane, a VAT-registered trader who is not a member of the cash accounting scheme, supplies some goods to a customer. The goods are dispatched on 27 March. Diane's VAT accounting period ends on 31 March. An invoice is issued on 2 April and payment is received on 4 April. What is the tax point?

Walton Ltd, a manufacturing company which is registered for VAT, purchased a motor car for £10,470 (which included £160 for vehicle excise duty) inclusive of VAT. The car is used by one of the employees for business and private use. What amount should be included in the capital allowance computation as the acquisition cost of this vehicle?

Which of the following is always a condition which must be fulfilled if input tax on the purchase of goods from a VAT-registered person is to be recovered?

Parminder runs two separate businesses. The first business is a clothes repair service which has taxable supplies of £35,000 per annum. The second business is a carwash service which has taxable supplies of £245,000 per annum. Both businesses are run by Parminder as a sole trader. Which of the businesses is relevant in determining whether Parminder should register for VAT?

Sheep plc began trading on 1 December 2024. On 1 March 2025 it won a contract to supply goods on 15 March 2025 worth £350,000. By what date must Sheep plc notify HMRC that it is liable to be registered for VAT?

Sheep plc began trading on 1 December 2024. On 1 March 2025 it won a contract to supply goods on 15 March 2025 worth £350,000. From what date must Sheep plc charge VAT on its taxable supplies?

Gobble plc made the following two standard-rated supplies during July 2024: Clothes (exclusive of VAT) – £400 Material (inclusive of VAT) – £514 What is the total amount of output VAT collected?

From the following list of purchases, select two items for which the input VAT is always wholly irrecoverable.

In his first year of trading to 31 December 2023 Wayne's taxable turnover from his business was £3,700 each month. For the first seven months of 2024 his taxable turnover was as follows: January £6,100; February £7,800; March £8,500; April £13,400; May £15,700; June £16,900; July £13,000. By what date must Wayne notify HMRC of his liability to register for VAT?

Benedict began trading on 1 August 2024 manufacturing rechargeable batteries and applied to register for VAT with effect from 1 December 2024. Prior to registration he had incurred VAT as follows: Van purchased on 3 May 2024 still in use at 30 November 2024 £500 Accountancy fees on invoice dated 5 September 2024 £30 Stock of spare parts as at 30 November 2024 £240 How much VAT can Benedict reclaim in respect of these items?

Which of the following statements about VAT is true?

Michaela began trading as a cabinet maker on 1 October 2023. Her quarterly turnover (spread evenly over the quarter) is as follows: Quarter ended – 31 December 2023 £12,000; 31 March 2024 £13,200; 30 June 2024 £19,500; 30 September 2024 £26,700; 31 December 2024 £40,200; 31 March 2025 £35,000. By what date must Michaela notify HMRC of her liability to register for VAT?

Miranda's taxable sales have dropped to £30,000 per annum and forecast annual sales are expected to be between £30,000 and £40,000. Which of the following options correctly identifies the VAT implications for Miranda?

Which of the following is not a deemed supply for VAT purposes?

Kevin is a VAT-registered trader who has suffered input tax as follows on purchases in the past month: Television for Kevin's wife £350; Machine for business use (Kevin has lost the VAT receipt) £989; Office stationery £256. How much input tax may Kevin recover on these items?

Which of the following statements about VAT is true?

Flight plc is VAT-registered but is not a member of the cash accounting scheme. A major customer of Flight plc went into liquidation today and there is little hope of its debt being recovered. The invoice was issued on 1 August 2024 with a credit agreement of payment by the end of the month. The associated output VAT was paid to HMRC in the quarter ended 31 October 2024 return. The debt will be written off in Flight plc's accounts on 31 March 2025. Assuming it is now 1 January 2025, what is the earliest date the output VAT could be reclaimed from HMRC?

Sunil ordered some goods from Grumpy Ltd, which issued a VAT invoice on 1 September. Sunil sent a cheque for the goods which Grumpy Ltd received on 3 September. The goods were dispatched on 8 September and received by Sunil on 10 September. Grumpy Ltd is not a member of the cash accounting scheme. What is the tax point for the supply?

Tien orders some goods on sale or return from Spice Ltd on 1 October. They are dispatched on 9 October. Tien adopts the goods on 1 November. Tien then receives the invoice for the goods dated 20 November. Spice Ltd receives payment for the goods on 29 December. Tien and Spice Ltd are not members of the cash accounting scheme. What is the actual tax point of the transaction?

Ahsan orders some goods from Land Ltd on 1 October. They are dispatched on 18 October. Ahsan then receives the invoice for the goods dated 29 October. Land Ltd receives payment for the goods on 7 December. Ahsan is not a member of the cash accounting scheme. What is the actual tax point of the transaction?

Disco Ltd intends to register voluntarily for VAT. Which of the following statements is correct?

Tambourine Ltd makes standard-rated supplies. At the end of October 2024 its taxable turnover in the previous 12 months exceeded £90,000 for the first time. Its turnover is expected to rise gradually. By what date is the company required to notify HMRC of its liability to register?

Tambourine Ltd makes standard-rated supplies. At the end of October 2024 its taxable turnover in the previous 12 months exceeded £90,000 for the first time. Its turnover is expected to rise gradually. From which date does registration take effect?

Arthur, who is not registered for VAT, has just completed 12 months' trading. The turnover for the trading year is as follows. Exempt supplies £14,300 Taxable supplies £76,250 Additionally Arthur sold an item of machinery (standard-rated) for £14,000. Based on the above information, does Arthur have any liability to register for VAT?

Abida is a salesman who incurred the following expenditure during his work. Hotel accommodation reimbursed to him by his employer: net £320, VAT £64, gross £384. Meals paid out of his salary: net £200, VAT £40, gross £240. In addition his employer purchased a laptop computer for Abida to use as an essential part of his job. The employer agreed 10% personal use for this equipment which had cost £1,080 (including VAT of £180). How much may be shown as net deductible input tax on the employer's VAT return?

Books Ltd incurred the following capital expenditure (including VAT). Car for salesman used for business and private purposes £15,750 Delivery van £10,080 How much VAT can be reclaimed in respect of the above?

Identify whether the following is a correct condition for the reclaim of output tax as bad debt relief: A period of six months has elapsed since the goods were supplied.

Identify whether the following is a correct condition for the reclaim of output tax as bad debt relief: Tax on the supply has been accounted for and paid.

Identify whether the following is a correct condition for the reclaim of output tax as bad debt relief: The bad debt claim must be made within six years of becoming eligible for relief.

Music Ltd has just received the following invoice from a supplier with a delivery of equipment (all figures exclude VAT). Musical equipment £6,400 Less 10% discount for settlement within 14 days (£640) Cash to pay if settled within 14 days £5,760 If payment is made within 21 days the discount is reduced to 5%. Music Ltd has a policy of paying one week after being invoiced. What is the correct amount of VAT that Music Ltd will pay?

Peter purchases goods from Jemima. Peter paid for the goods when he ordered them on 3 April. Jemima made the goods available to Peter on 7 April, but Peter did not collect them until 11 April. Jemima issued the invoice on 16 April. What is the actual tax point for this supply?

Identify whether the following is a taxable supply for VAT purposes: Steve, who is registered for VAT and runs a plant hire company, let his brother use a digger at no charge in the quarter ended 31 March 2025.

Identify whether the following is a taxable supply for VAT purposes: In the quarter to 30 June 2025, Steve used the same company digger to help dig the foundations for an extension being built onto his own house.

Block Ltd, a building company registered for VAT, purchased a motor car for the sales director for $$\pounds25{,}380$$ (inclusive of VAT), which includes $$\pounds705$$ for factory-fitted satellite navigation. The car is used $$20\%$$ privately by the sales director. What is the cost to the company of the vehicle for capital allowance purposes?

Charlie, who runs a shop selling women's clothing, gave to her sister a coat she had bought for $$\pounds120$$ that would have been sold in the shop for $$\pounds200$$ . All figures are VAT-inclusive. What is the value of the coat for VAT purposes?

Gertrude has a VAT quarter ended 31 March 2025. Normal payment terms are one calendar month after the invoice date. Wood Ltd still owes $$\pounds5{,}000$$ from an invoice issued on 30 June 2024. Gertrude believes it will be paid in full and has not written it off in the accounts. Identify whether bad debt relief can be claimed as at 31 March 2025.

Gertrude has a VAT quarter ended 31 March 2025. Normal payment terms are one calendar month after the invoice date. Trees Ltd owes $$\pounds2{,}000$$ from an invoice issued on 15 September 2024. Gertrude does not expect payment and has written it off in the accounts. Identify whether bad debt relief can be claimed as at 31 March 2025.

Identify whether the following statement is correct: A business making $$\pounds53{,}000$$ of standard‑rated supplies and $$\pounds38{,}000$$ of exempt supplies is required to register for VAT.

Identify whether the following statement is correct: A business making $$\pounds91{,}000$$ of zero‑rated supplies only does not have to become VAT registered.

Lancashire Ltd began trading on 1 January 2024. Taxable turnover was $$\pounds4{,}900$$ per month for the first six months, rising to $$\pounds8{,}200$$ per month for the next six months. In January 2025 the turnover increased to $$\pounds16{,}400$$ per month. Lancashire Ltd must start to charge VAT on its supplies from:

Yorks Ltd began trading on 1 January 2025, anticipating taxable turnover of $$\pounds91{,}000$$ per month. By when must it notify HMRC of its liability to register for VAT?

Yorks Ltd began trading on 1 January 2025, anticipating taxable turnover of $$\pounds91{,}000$$ per month. From what date is the company's VAT registration effective?

Maddie is registered for VAT and makes standard‑rated supplies only. She sold goods to Julie for $$\pounds76$$ without charging VAT because she believed the goods were exempt. It is now discovered that VAT should have been charged on this sale. What is the amount of VAT payable on this sale?

Maddie is registered for VAT and makes standard‑rated supplies only. She sold goods to Julie for $$\pounds76$$ without charging VAT because she believed the goods were exempt. It is now discovered that VAT should have been charged on this sale. Who must pay the VAT?

Harry began trading on 1 September 2024. His monthly turnover (excluding VAT) is: Standard‑rated supplies $$\pounds4{,}600$$ , Zero‑rated supplies $$\pounds1{,}900$$ , Exempt supplies $$\pounds500$$ . On 1 May 2025, he sold surplus office machinery for $$\pounds3{,}500$$ (excluding VAT). Should exempt supplies be included when determining when the VAT registration limit of $$\pounds90{,}000$$ is first exceeded by Harry's business?

Harry began trading on 1 September 2024. His monthly turnover (excluding VAT) is: Standard‑rated supplies $$\pounds4{,}600$$ , Zero‑rated supplies $$\pounds1{,}900$$ , Exempt supplies $$\pounds500$$ . On 1 May 2025, he sold surplus office machinery for $$\pounds3{,}500$$ (excluding VAT). Should the supply of surplus office machinery be included when determining when the VAT registration limit of $$\pounds90{,}000$$ is first exceeded by Harry's business?

Skating Ltd is VAT‑registered and only makes standard‑rated supplies. For a purchase of a new machine costing $$\pounds15{,}000$$ (VAT‑inclusive), the VAT invoice has been lost and cannot be replaced. To what extent is the input tax recoverable?

Skating Ltd is VAT‑registered and only makes standard‑rated supplies. For the purchase of a car for a salesman costing $$\pounds20{,}000$$ (VAT‑inclusive) which is used $$60\%$$ for business purposes, to what extent is the input tax recoverable?