问答题
3.Smart Ltd commenced trading on 1 September 2014. The company’s sales for the first four months of trading were as follows:
问答题
(a) State, giving reasons, the date from which Smart Ltd was required to register for value added tax (VAT), and by when it was required to notify HM Revenue and Customs (HMRC) of the registration. (3 marks)
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【答案解析】
问答题
(b) State how and when Smart Ltd will have to submit its quarterly VAT returns and pay any related VAT liability.Note: You are not expected to cover substantial traders or the election for monthly returns. (2 marks)
【正确答案】(1) Smart Ltd will have to file its VAT returns online and pay the VAT which is due electronically.
(2) The deadline for filing the VAT return and paying any VAT which is due is one month and seven days after the end of each quarter (for example, on or before 7 March 2015 for the quarter ended 31 January 2015).
【答案解析】
问答题
(c) State the circumstances when a VAT registered business like Smart Ltd, which is not using the VAT cash accounting scheme, would still have to account for output VAT at the time that payment is received from a customer. (2 marks)
【正确答案】(1) Smart Ltd will have to account for output VAT at the time that payment is received if a customer pays before the basic tax point and before an invoice is issued (for example, if a deposit is paid).
(2) The basic tax point for services is the date when they are completed.
【答案解析】
问答题
(d) Advise Smart Ltd as to why it should be beneficial for the company to use the VAT cash accounting scheme.(3 marks)
【正确答案】(1) Output VAT will be accounted for 60 days later than at present, because the scheme will result in the tax point becoming the date when payment is received from customers.
(2) The recovery of input VAT on purchase invoices will not be affected because Smart Ltd pays these immediately after they are received.
(3) The scheme will provide automatic relief for an impairment loss should a customer default on the payment of a debt.
【答案解析】