Chap 12

By what date should Lavender Ltd submit its VAT return for the quarter ended 31 March 2024?

• 31 March 2024

• 30 April 2024

• 7 May 2024

By what date should Lavender Ltd pay its VAT relating to the quarter ended 31 March 2024?

• 31 March 2024

• 30 April 2024

• 7 May 2024

Which of the following options correctly identifies Cornflower pic's required VAT payments for the quarter ended 31 March 2024?

• A single payment of £900,000

• Three separate payments of £300,000 each

• Two payments of £250,000 each and a balancing payment of £400,000

• Two payments of £125,000 each and a balancing payment of £650,000

What is the maximum invoice value if a trader wishes to issue a simplified VAT invoice?

• £50

• £100

• £250

• £1,000

Which of the following statements is correct?

• She pays all of her VAT in one payment and submits her return by 7 February 2024.

• She pays all of her VAT in one payment and submits her return by 29 February 2024.

• She pays her VAT in nine monthly installments starting in April 2023 with a balancing payment and the return submitted by 7 February 2024.

• She pays her VAT in nine monthly installments starting in April 2023 with a balancing payment and the return submitted by 29 February 2024.

What is the final balancing payment of his VAT for the year ended 31 March 2024 and when is it due?

• £2,500 by 7 May 2024

• £2,500 by 31 May 2024

• £4,500 by 7 May 2024

• £4,500 by 31 May 2024

In relation to which of these invoices, if either, is Michael required to retain copies?

• Neither

• Detailed invoices only

• Simplified invoices only

• Both

What is the maximum permitted annual taxable turnover for a trader to join the annual accounting scheme?

• £100,000

• £1,350,000

• £1,600,000

• £150,000

Which of the following statements about the VAT payments on account scheme for substantial traders is true?

• Under the payments on account scheme VAT is paid in quarterly instalments.

• Under the payments on account scheme VAT is paid in instalments every other month (ie, six payments per annum).

• Each payment on account is 1/24 of the total VAT liability of the previous year.

• The balancing amount for the year, if any, is payable two months after the year end.

Which two of the following statements about VAT are true?

• Businesses with taxable turnover greater than £2.3 million must join the VAT payments on account scheme.

• Businesses operating the flat rate scheme apply their sector percentage to total (both taxable and exempt) VAT-inclusive turnover.

• HMRC may grant exemption from registration to zero-rated traders that have negligible amounts of input VAT.

• Businesses operating the annual accounting scheme must still file VAT returns every quarter.

• Businesses operating the cash accounting scheme cannot also join the annual accounting scheme.