F Reliefs

Question 1

The total cost of fuel distinguishes?

Answer 1

No distinguishment between personal and private use

Question 2

To have points rest to zero?

Answer 2

Submit four consecutive VAT returns on time

Question 3

When a car is used for private purposes, even if it has employment usage (VAT claimance)?

Answer 3

NO VAT CAN BE CLAIMED

Question 4

When is VAT charge payable for fuels costs for an employee where there is some private use of the vehicle?

Answer 4

If employee does not reimburse the employer

Question 5

If historic test for VAT met on 31 October 2023?

Answer 5

Notified HMRC by 30 November 2023

Registration effective 1 December

Question 6

Entertaining UK customers and VAT?

Answer 6

Is deducted from VAT

Question 7

What is not included on a VAT invoice?

Answer 7

The customer’s VAT registration number

Question 8

VAT invoice request and retailers?

Answer 8

Retailers need only issue a VAT invoice if customer requests one

Question 9

Refunds of VAT time limit?

Answer 9

4 years

Question 10

Advantage be if businessman sold her entire business as a going concern for VAT purposes?

Answer 10

Would not have to pay output VAT in respect of the sale

Question 11

Amount of each payment on account which Alessandro will have to make towards his VAT liability for the year ended 31 March 2024? (annual accounting scheme)

Answer 11

Total VAT liability for previous yeasr * 10%

Question 12

Advantage of annual accounting scheme?

Answer 12

Less administration

Smaller more regular payments

If turnover is increasing, current VAT instalments are based on the lower, previous year’s VAT liability

Question 13

Advantage of cash accounting scheme?

Answer 13

It improves cash flow where customers are late payers.

It gives automatic relief for impairment losses.

It can be used along with the annual accounting scheme

Question 14

Advantage of flat rate scheme?

Answer 14

It eliminates the need to keep detailed records of purchases and sales. The business need only maintain a VAT account in its general ledger

Question 15

Disadvantages of VAT scheme?

Answer 15

It will not be beneficial for businesses with large amounts of input VAT to recover

It will not be beneficial for businesses with turnovers substantially comprised of zero-rated or exempt sales

Question 16

When goods are exported from the UK by a registered UK taxable supplier?

Answer 16

This is zero rated supply

Question 17

VAT on the export of services delivered outside of the UK? (is it charged)?

Answer 17

No

Question 18

What can VAT registered exporters recover?

Answer 18

UK input VAT attributable to the exported goods and services

Question 19

Where is output VAT charged in imports and exports?

Answer 19

Imported goods

Question 20

What happens with the import VAT?

Answer 20

It is declared as output VAT, but can be reclaimed as input VAT return on the same VAT return

Question 21

Only time when output VAT and input VAT are not equal in terms of import VAT?

Answer 21

If a business makes exempt supplies

Question 22

Can input VAT be reclaimed on exempt supplies?

Answer 22

No

Question 23

Exports to countries?

Answer 23

No VAT

Question 24

Imports from countries?

Answer 24

Input and output VAT net each other off, unless exempt supplies

Question 25

Is fuel scale charge input or output VAT?

Answer 25

Output VAT

Question 26

How many VAT returns are charged for each tax period in group registration?

Answer 26

One VAT return

Question 27

What are conditions to register in group registration?

Answer 27

One of the companies controls each of the others Each of them has an established place of business in UK

Question 28

What are consequences when registering in group registration?

Answer 28

Each VAT group must appoint a representative member which accounts for the group's output VAT and input VAT All members are liable

Question 29

Advantages of group VAT (external transactions)

Answer 29

Group need only account for VAT on external group sales and acquisitions

Question 30

Zero rated company output and input VAT recovery in group registration?

Answer 30

Only input VAT

Question 31

Standard company output and input VAT recovery in group registration?

Answer 31

Output and input VAT

Question 32

How much VAT be can be claimed for legal fees more than 6 months prior to registration?

Answer 32

No VAT can be claimed

Question 33

How much VAT be can be claimed for legal fees at or less than 6 months prior to registration?

Answer 33

Input VAT can be claimed

Question 34

Staff and overseas customers VAT?

Answer 34

No input VAT

Question 35

Entertaining (except staff and overseas customers) VAT?

Answer 35

Input VAT

Question 36

Basic tax point for a supply of goods?

Answer 36

The time the goods are made available to the customer

Question 37

Calculated value added tax payable (VAT return)?

Answer 37

Output VAT - input VAT (zero rated supplies not included)

Question 38

Food for human consumption?

Answer 38

Zero-rated

Question 39

Sewerage services?

Answer 39

Zero-rated

Question 40

Books, newspapers, printed music and maps?

Answer 40

Zero-rated

Question 41

New residential land and buildings?

Answer 41

Zero-rated

Question 42

Transport of people by any vehicle for 10 or more passengers?

Answer 42

Zero-rated

Question 43

Travel services where travel destination is outside the UK?

Answer 43

Zero-rated

Question 44

Air navigation, port pilotage, salvage and towage services?

Answer 44

Zero-rated

Question 45

Repair and maintenance services of ships and aircraft?

Answer 45

Zero-rated

Question 46

Lifeboat and sea rescue services?

Answer 46

Zero-rated

Question 47

Drugs, medicines and aids for handicapped people?

Answer 47

Zero-rated

Question 48

Specified supplies of goods to or by charities?

Answer 48

Zero-rated

Question 49

Children's clothing and footwear?

Answer 49

Zero-rated

Question 50

The export of goods (including related transport costs) to all customers located in countries outside the UK

Answer 50

Zero-rated

Question 51

Land and buildings

Answer 51

Exempt

Question 52

Financial services

Answer 52

Exempt

Question 53

Insurance

Answer 53

Exempt

Question 54

Educational services

Answer 54

Exempt

Question 55

Health and welfare services provided by government or other bodies on a non-profit-making basis

Answer 55

Exempt

Question 56

Supply of goods or services by charities for charitable fund raising events

Answer 56

Exempt

Question 57

Wages and dividends

Answer 57

Outside the scope

Question 58

Transfer of goods arising from a business being sold or otherwise transferred as a going concern

Answer 58

Outside the scope

Question 59

Certain gifts of goods and services

Answer 59

Outside the scope

Question 60

Exports of services to all customers located in countries not within the UK

Answer 60

Outside the scope

Question 61

Entertaining UK customers?

Answer 61

Can't be recovered as input tax

Question 62

What impairment losses are deducted in a VAT return?

Answer 62

Incurred at least six months

Question 63

Calculate VAT under flat rate scheme?

Answer 63

Output VAT (inclusive) * flat rate percentage

Question 64

Supply of services within 6 months of registration?

Answer 64

Included in input VAT

Question 65

Supply of services more than 6 months of registration?

Answer 65

Not included in 6 months

Question 66

If error doesn't exceed £10000 or 1% of turnover (up to a limit of £50000)?

Answer 66

It is immaterial

Question 67

Where refunds of VAT arise from error claims, where can the claim only relate to?

Answer 67

Overpayments of VAT made in the four years preceding the making of the claim for a refund

Question 68

Where a new car is leased and input VAT?

Answer 68

50% of the input VAT on the lease charge is irrecoverable

Question 69

Goods (i.e. inventory and non-current assets) acquired four years or less prior to registration

Answer 69

Included in input VAT

Question 70

Entertaining overseas customers?

Answer 70

Can be recovered by input tax

Question 71

What does cash generally mean?

Answer 71

Always date of payment determines what it's dealt with

Question 72

What is meant by the basic tax point?

Answer 72

When the service is complete OR when goods are dispatched to the customer