Chapter 5

Question 1

What does a business automatically join when they first register?

Answer 1

The standard VAT scheme

Question 2

What did traders have to submit in the standard scheme?

Answer 2

A VAT return for every return prriod

Question 3

How long I return period usually

Answer 3

Three months

Question 4

How do you submit your return?

Answer 4

Online and pay electronically

Question 5

When was returns be submitted to HMRC?

Answer 5

Within one month and seven days after the end of the return period

Question 6

What’s a VAT registered businesses automatically required to use?

Answer 6

Mtd ie they have to keep their VAT records digitally and provide their VAT return information teacher NRC through MTD compatible software

Question 7

Will HMRC sign up or no VAT registered businesses to MTD automatically?

Answer 7

Yh

Question 8

What businesses are exempt from the MTD rules?

Answer 8

It is not practical for the business to use MTD because of age disability remote location or some other valid reason or the business is subject to insolvency proceedings or the business is entirely run by people whose religious belief do not allow to use electronic software 

Question 9

The exchange of information with HMRC needs to be via What

Answer 9

An application programming interface and it is generally expected. The API enabled software will also be the method used for data retention.

Question 10

Where are details of MTD compatible? Third-party software is available

Answer 10

On HMRC’s website

Question 11

How must a VAT payment be paid?

Answer 11

Electronically the latest payment date is the same as the due date for the VAT return and this is one month and seven days after the end of the return period

Question 12

Regarding the one month and seven days to pay, the seven days does not apply

Answer 12

If the trader uses the annual accounting scheme, if the trader has to make monthly payments 

Question 13

If a trader pays by direct debit, the payment is taken from HMRC when

Answer 13

Three working days after the normal term submission date or three days after their return is actually submitted if this is later

Question 14

What are other electronic payment methods, including?

Answer 14

Debit or credit over the Internet, bank transfer, faster payment using an online bank account

Question 15

When will a business receive a refund from HMRC regarding VAT?

Answer 15

This will be 30 days of receiving the return if HMRC is late in refunding the fat owed to the trade and may be entitled to repayment interest

Question 16

Traders who receive regular repayments can choose to submit what?

Answer 16

Monthly returns

Question 17

When will a refund not be automatically made?

Answer 17

If the outstanding debt due to HMRC

Question 18

What are the schemes for accounting for VAT?

Answer 18

Annual accounting cash accounting flat rate scheme

Question 19

Aa What do the special schemes design to help?

Answer 19

Businesses by reducing admin and improved cash flow

Question 20

Aa What can help relieve the burden of administration for VAT returns?

Answer 20

An annual accounting scheme along business to submit a single VAT return for 12 month period

Question 21

Aa How does the yearly VAT scheme work?

Answer 21

The annual term must be filed within two months of the end of the annual period
Payments on an account I made during the The year. They tried to make it a monthly or costly payments on account.
Balancing payment or repayment is made when the annual return is submit
Or payments must be made electronically with no seven day extension
Additional payments can be made by a business when desired

Question 22

Aa How many payments are made under the monthly scheme?

Answer 22

Nine payments and account are made at the end of month 4 to 12 of the year each payment represents 10% of the VAT liability for the previous year

Question 23

Aa How many payments are made under the quarterly scheme?

Answer 23

Three payments on account are made at the end of months for seven and three each payment is calculated at 25% of the liability of the prior yeah

Question 24

Aa How much does a business have to earn to be eligible for the accounting VAT scheme?

Answer 24

No more than 135 0000

Question 25

Aa What conditions must the business follow to be eligible to join schemes?

Answer 25

Must be up-to-date with its VAT returns Business must leave the scheme if it’s estimated taxable turnover in the next 12 months is more than 1600000

Question 26

Aa This scheme is useful for businesses that want to

Answer 26

Reduce administration because only one VAT return is needed instead of four Fix it VAT payments in advance lease for its nine monthly payments

Question 27

AA When is the scheme not used for?

Answer 27

The business receive repayment is only one repayment per year will be received The tax will turn over the business is decreasing as in the interim payments will be higher than under the standard scheme

Question 28

AA -What kind? The annual accounting scheme be used in conjunction with

Answer 28

Either the cash accounting schemes or the flat rate schemes, but not both

Question 29

Ca Output VAT is paid to who

Answer 29

HMRC by reference to the period in which the tax point occurs regardless of whether a payment has been received from the customer

Question 30

Ca input VAT is reclaimed from

Answer 30

HMRC by reference to the invoices received in their return period even if payment has not been made to the supplier

Question 31

Ca Under the cash accounting scheme, a business account for VAT based on

Answer 31

When payment is actually received from customers were made to suppliers the tax point becomes the date of receipt or payment

Question 32

Ca Under the air accounting cash scheme invoices will be sent to who

Answer 32

Customers in receipt from supplies in a normal way, but the key record that must be kept as a cash book

Question 33

Ca What should a cashbook summarise?

Answer 33

All the payments made and received and have a separate column for VAT