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ACCA Strategic Professional · Advanced Taxation (UK) · Statutory obligations, time limits and the implications of non-compliance

Tariq Ltd has taxable supplies of £92,000 in the last 12 months and is not VAT registered. Under the registration limit in the ATX-UK tax tables, what is the position?

Tariq Ltd must register for VAT. The registration limit is £90,000 of taxable supplies, and its supplies of £92,000 exceed this. The £88,000 figure is the deregistration limit, not the test for registration.

  1. AIt must register, because taxable supplies exceed £90,000Correct
  2. BIt need not register, because the limit is £88,000 for registration
  3. CIt need not register, because registration is only required above £100,000
  4. DIt must register only if supplies exceed £90,000 in the calendar year

Explanation

The registration limit is £90,000 and the deregistration limit is £88,000. Supplies of £92,000 exceed £90,000, so registration is required. The £88,000 figure is the deregistration limit, so it is the wrong threshold.

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