Tax Processes for Businesses
VAT from registration to filing under Making Tax Digital, the special schemes, penalties and errors, plus payroll reporting duties and the ethics of tax work.
Subsections
Read the lessons, then take the check. The check pulls in anything you struggled with earlier in the unit.
VAT fundamentals
What VAT is, who has to register, the types of supply and rate, and the records and invoices HMRC expects to see.
- How VAT works, and when you must register9 min
- Types of supply, rates and tax points9 min
- Invoices, records and where the rules live8 min
VAT returns, schemes and errors
Complete a return box by box under Making Tax Digital, choose between the special schemes, and correct errors properly.
- Completing the return box by box9 min
- Cash accounting, annual accounting and flat rate8 min
- Errors, penalties and doing the right thing8 min
Payroll obligations and reporting
Gross to net pay, PAYE and National Insurance, real time information deadlines, and communicating tax duties clearly.
Mixed unit review
Fifteen questions drawn from the whole unit, weighted towards the topics you have got wrong before. Nothing is flagged for revision right now.
VAT quarter and payroll month at Brindley Interiors
You handle VAT and payroll at Brindley Interiors. The quarter has just closed, one customer has gone under, the sales manager wants a discount arrangement checked, and a director has floated an idea about the return that you will need to handle carefully.
How this unit is assessed
Computer based assessment, seven tasks, 100 marks, computer & human marked.
| Task | Focus | Marks |
|---|---|---|
| 1. VAT registration and legislation | Thresholds, registration, deregistration, guidance sources | 14 |
| 2. Types of supply and rates | Standard, reduced, zero rated, exempt, outside the scope | 14 |
| 3. Invoices and records | Valid VAT invoices, tax point, record retention | 14 |
| 4. Completing the VAT return | Box by box calculation and adjustments | 20 |
| 5. Schemes, errors and penalties | Cash accounting, annual, flat rate, error correction | 14 |
| 6. Payroll obligations | PAYE, NIC, RTI submissions and deadlines | 14 |
| 7. Written communication | Explaining a tax matter to a colleague or manager | 10 |