7 - Indirect Tax Flashcards
(23 cards)
How many days must Stamp duty land tax be paid in?
Must be paid by purchase within 14 days of completion date
Do you pay SDLT on fixtures and fittings?
No
What is SDLT based on?
True value of the property
Second home or BTL SDLT rate
Surcharge of 3% on £40k+ property value
Non-UK residents SDLT and non residential properties
Non UK - Surcharge of 2% on purchases £40k+
Non residential - Additional bracket of 2% on prices between £150k - £250k
If you purchase a second property and have paid surcharge but this property is a replacement and old property sold can you reclaim SDLT?
Yes, can reclaim providing original property sold within 36months
FTB SDLT exemption
£425k - £625k
SDLT for rent on resi. & commercial
Resi. - 1% on amount over £125k
Commercial - 1% on amount over £150k upto £5m then 2%
When must a company register & can deregister for VAT? And when must notify HMRC to register
Register - £85k limit if taxable supplies
Deregister - £83k limit if taxable supplies
Have 30 days from end of month limit was exceeded to notify HMRC
Output VAT & Input VAT
Output VAT - company sells clothes to customer and charge VAT on clothes
Input VAT - company buys materials to make clothes and company pays VAT on material
Can any excess input tax be reclaimed?
Yes
Why would a company register for VAT if not yet made £85k limit?
As can reclaim excess input VAT
Categories of VAT
Exempt supplies - e.g. insurance, finance, health
Zero rated supplies 0% - e.g. food, domestic supplies, books
Reduced rate supplies 5% - e.g. fuel, certain property renovations
Standard rate supplies 20% - e.g. catering, warm cooked food
How often is VAT paid for most companies?
Quarterly
What is VAT flat rate scheme?
A small business (annual turnover of no more than £150k - 230k) pays a flat rate on INPUT VAT ONLY is not offset against output VAT and there is a flat rate of 16.5% used
Cash accounting scheme
Enables smaller business (max taxable supplies or £1.35m per yr) to pay VAT when customer has paid trade rather than when invoice raised. Can use until hit £1.6m turnover
Bad debt relief
Customers can claim VAT relief if paid VAT at point of invoice and debt is atleast 6months over due and has been written off by the business
When is VAT typically paid (excluding cash accounting)?
Every quater unless large company who pays monthly
Second hand goods pay VAT based on what?
VAT only paid on difference between price paid and price sold
Stamp duty and stamp duty reserve tax on shares
Stamp duty - Paper
SDRT - Paperless
Stamp duty and stamp duty reserve tax tax rate and exemptions
Tax rate of 0.5%:
- Paper - rounded to nearest £5
- Paperless - rounded to nearest penny
Transactions under £1k exempt from stamp duty (paper) only
For SDLT on a property purchase do you pay the rate which you are in for all income or pay amount for each tier of income bracket?
Pay % of purchase price for each income tier
Is stamp duty and stamp duty reserve tax paid on purchases and sales?
No, purchases only
