CTA VAT 1-9 Flashcards
(17 cards)
Output VAT
Less: Input VAT
= Vat due to/ from HMRC
What are the box numbers?
Box one
Box four
Box five
Is input tax recoverable on exempt supplies?
No
When do most business file returns online and pay VAT electronically?
One month and seven days following the end of the VAT period
What 5 things are needed to be in scope of VAT?
- Supply of goods/services
- Takes place UK
- Made by taxable person
- Course of furtherance of business
- Taxable supply
If historic test is met, when must HMRC be notified by and when is business registered from and VAT charged?
- Within the next 30 days
- Start of following month
If future test is met, when does HMRC need to be notified and when is it registered from and VAT charged?
- before the 30 day period (in which future test is done) expires
- From the start of the 30 day period as above
When deregistering, any VAT on goods still at hand must be accounted for on final VAT return, unless VAT is not more than …
£1,000
*This is total VAT on all chargeable assets
Examples of reduced rate supplies?
- Domestic fuel and power
- Childrens car sears
- Contraceptive products
- smoking cessation products
- cable suspended passenger transport systems
What happens on a self-supply?
We charge VAT on an item to ourselves.
What happens on a deemed supply?
output VAT charge
On a gift of goods, input tax is clawed back by way of deemed supply.
This is done by ….
making an output tax charge on the replacement cost of such goods
*subject to a £50 (excl VAT) business gift limit
Is a sample for marketing purposes a deemed supply?
NO
Where a business purchases fuel for private use by an employee or owner of the business, what 3 choices are there?
- Treat all road fuel purchased as business expense and declare fuel scale charges to account for private use
- keep accurate mileage records to enable apportionment of input tax
- not treat road fuel as business expense and recover no input tax (no deemed supply)
Occasionally, the legislation prescribes that an open market value be applied when valuing consideration.
In what two circumstances?
- Supplies between connected persons where purchasing party not fully taxable
- Employees paying employer for private fuel
When prompt payment discount, VAT must be calculated on full amount.
If discount is taken, you can:
- Issue a credit note to reflect the discount
or
- Narrative can be included in the invoice
What do we look for when considering if it is a single or multiple supply?
- distinct and independent
- not artificially split
- are they ancillary services
- what is the customer’s intention?
Continuous services have no basic tax point. The tax point is the earlier of:
money paid or
invoice issued
