A UK business's taxable turnover exceeds the VAT registration threshold on a rolling 12-month basis. What is this threshold for 2025/26?
Vat Legislation
Question · Easy
Under the historic (backward-looking) registration test, within what period must a business notify HMRC after its rolling 12-month taxable turnover first exceeds £90,000?
Question · Medium
Charge on consumer spending collected on business transactions, imports and acquisitions in the UK and Isle of Man.
Legal requirements
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Chapter 1: VAT Legislation, Registration & Records
1.1 Scope of UK VAT & Supply Classification
Study guide
Under the future (forward-looking) registration test, a business must register for VAT when it expects taxable turnover to exceed £90,000 in:
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Game
What is the standard rate of UK VAT applied to most goods and services?
UK tax authority that administers VAT and payroll and collects the amounts due.
Which of the following supplies is zero-rated for UK VAT purposes?
What is the key difference between a zero-rated supply and an exempt supply for VAT recovery?
UK requirement for VAT-registered businesses to keep records and send returns using compatible software.
1.2 Compulsory & Voluntary VAT Registration
A business makes both taxable and exempt supplies. What term describes its VAT status?
Swap tiles to line up three of the same term.
Term Match
What is the VAT deregistration threshold, below which a business may apply to cancel its registration?
___ supply: transaction on which no VAT is charged and for which the seller normally cannot recover VAT on its own costs.
A business voluntarily registers for VAT before reaching the threshold. What is a key advantage of doing so?
Which document must a VAT-registered business issue to another VAT-registered customer to allow that customer to reclaim input VAT?
___ rate scheme: a VAT scheme under which a business pays a fixed rate to HMRC, keeps the difference between what it charges customers and pays HMRC, and cannot reclaim VAT on purchases except certain capital assets.
1.3 VAT Deregistration, Tax Points & Invoicing
For a sale of standard-rated goods, what is the 'basic tax point'?
Flip two cards at a time to find matching terms.
Term Pairs
Goods are delivered on 10 May, and the VAT invoice is issued on 18 May. Using the 14-day rule, what is the actual tax point?
___ tax: VAT a business charges on its taxable sales and must account to HMRC for.
VAT computation
What is the entry threshold (expected taxable turnover) to join the VAT Flat Rate Scheme?
Vat Schemes
Under the Flat Rate Scheme, a business has VAT-inclusive (gross) turnover of £12,000 in a quarter and a flat rate percentage of 12%. How much VAT does it pay to HMRC?
___ tax: VAT paid on business purchases and imports that a registered business can reclaim.
1.4 VAT Records, Retention & HMRC Powers of Inspection
A business under the Flat Rate Scheme is classed as a 'limited cost trader'. What flat rate percentage must it use?
Question · Hard
Find five hidden terms in a grid of letters.
Term Search
Under the VAT Cash Accounting Scheme, when does a business account for output VAT on its sales?
___ scale charge: figure used to work out how much VAT to pay back when a business car is used privately, so detailed mileage records are not needed.
What is the entry turnover limit for the VAT Cash Accounting Scheme?
A key automatic benefit of the Cash Accounting Scheme is that it provides:
___ debt relief: reclaiming VAT on a supply when the customer has not paid.
1.5 Late Registration, HMRC Assessments & Failure-to-Notify Penalties
How many VAT returns does a business submit each year under the Annual Accounting Scheme?
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Under the Annual Accounting Scheme using monthly payments, when are the interim payments on account due?
Road vehicles whose purchase VAT is generally blocked, unless bought mainly for taxi work, driving instruction or self-drive hire.
A business sells standard-rated goods for £4,000 net. How much output VAT is added at 20%?
Calculate Vat
A VAT-inclusive (gross) invoice is £600. What is the VAT element, using the standard rate VAT fraction?
VAT ___: percentage applied to a supply, taking values of 20%, 5% or 0%.
Chapter 2: Calculating Output Tax & Input Tax
2.1 Output Tax Calculations & Special Adjustments
A customer is offered a 5% prompt payment discount on a £1,000 net standard-rated supply but does NOT take it and pays the full amount. On what figure is VAT charged?
In a VAT period, output VAT is £18,400 and input VAT is £11,250. What is the VAT payable to HMRC?
VAT ___: form usually sent to HMRC every three months showing VAT charged and VAT paid to other businesses.
Filing checks
Which of these can a business NOT reclaim input VAT on, even if otherwise VAT registered?
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