- This topic has 5 replies, 3 voices, and was last updated 6 years ago by Tax Tutor.
- AuthorPosts
- May 24, 2018 at 6:21 pm #453813
Hi sir
In the first year of trading to 31st dec 2016 , scott’s taxable turnover was 5000 per monthFor the first seven months of 2017 his turnover was as follows :
Jan-8400
Feb-8600
Mar-8800
April-9600
May-10000
June-10200
July-10300From what date will scott be registered for Vat under compulsory registration ?
Ans as per BPP Kit : 1st Aug2017is it not 1 may 2017 (reaches 85000 mark in March2017) ?
May 29, 2018 at 9:57 am #454577Look at how we work the answer in example 1 of chapter 25 and you will see what you are doing wrong – we only look at the previous 12 months in computing the total to compare with the registration limit whereas you are just adding extra months to the first 12!
June 5, 2018 at 7:51 am #456267Hi sir
I’m sorry i don’t get it . please can you explain how ans is 1st august , 2017Please sir
Thank you
June 5, 2018 at 1:30 pm #456339Would I be correct in saying that June 2017 is the date that Scott should register? £5000 * 6 + £8400 + £8600 + £8800 + £9600 +£10000 + £10200 = £85,600. The month before the total would be £85600 + £5000 – £10200 = £80,400.
June 5, 2018 at 5:53 pm #456571@neilsolaris said:
Would I be correct in saying that June 2017 is the date that Scott should register? £5000 * 6 + £8400 + £8600 + £8800 + £9600 +£10000 + £10200 = £85,600. The month before the total would be £85600 + £5000 – £10200 = £80,400.But does he have 30 days in which to register, which takes him up to 1st of August, as per the answer? I would have thought it would be 30th of June though!
June 6, 2018 at 10:59 am #456884The taxpayer does exceed the registration limit at 30 June as you correctly compute, so he must register within 30 days – so by 30 July – and will be registered with effect from 1 August – look at page 149 of the OT notes – section 1.1 notes b,c and d for example of how system works.
The question posed was “from what date will Scott BE REGISTERED” – as so often with OT questions it is essential to read the exact requirement as the same information could have been used to ask 3 different questions with 3 different dates for answers
30 June – when the registration limit is exceeded
30 July – the date by which the taxpayer must register
1 August – the date from which the taxpayer will be registered - AuthorPosts
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