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this is the qtn
Clueless Ltd is registered for value added tax (VAT), but currently does not use any of the special VAT schemes. The company has annual standard rated sales of £1,200,000 and annual standard rated expenses of £550,000. Both these figures are exclusive of VAT and are likely to remain the same for the foreseeable future. Clueless Ltd is up to date with all of its tax returns, including those for corporation tax, PAYE and VAT. It is also up to date with its corporation tax, PAYE and VAT payments. However, the company often incurs considerable overtime costs due to its employees working late in order to meet tax return filing deadlines.
Which of the following statements is/are correct?
(1) Clueless Ltd could join the annual or cash accounting schemes as its expected turnover is below the threshold of £1,350,000
(2) Clueless Ltd could join the annual accounting or flat rate schemes as its expected turnover is below the threshold of £1,350,000
(3) A company is required to have a good track record of both filing and payment in order to apply to join annual or cash accounting schemes
I am happy to answer any questions on areas on which you are unsure, but I am not here to do your homework. Why are you attempting a question for which you do not have the answer? You should be using a revision kit from one of the ACCA approved publishers.
i am really sorry for the huge amount of qtns i’m asking u coz i know its really burdensome to answer so many and im really grateful for ur help coz im doing self study and hv no one to approach to clarify my doubts.
this qtn is actually from study hub practise qtns, see as per the rules of annual nd cash acctng scheme, there shld be no offence made vat returns or payments. so i chose the ans as both option 1 nd 3 r correct, but study hub says only option one is correct.
A company needs to be up to date with its VAT payments, and with its VAT returns, however there is not a retrospective test. this is the justification theyve given for y statemnt 3 is not correct.
im still confused as to y option 3 is not correct
In future, instead of posting the question and expecting me to provide the answer, tell me what your uncertainty is over the answer that is provided but only after you’ve referred to your study materials and tried to find the answer yourself.
Answer 3 is too vague. ‘A good track record’ is not good enough. The conditions are that the schemes cannot be joined if the person/company is not up to date with its VAT returns and/or payments, and/or the person/company has committed a VAT offence in the last 12 months, for example VAT evasion.
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