Question 1

Section B: Case 1 - QuantumLeap VR Ltd

Scenario: QuantumLeap VR Ltd is a virtual reality software developer. The company began trading on 1 January 2023. Its taxable turnover was £6,000 per month for the first 10 months. In November 2023, it secured a major contract, and taxable turnover jumped to £30,000 for November and £30,000 for December.

Question: Assuming QuantumLeap VR Ltd notified HMRC on time (based on exceeding the threshold at the end of November), on what date will it be registered for VAT?

Accepted Answer

Apply the historic test registration rule. If the threshold is exceeded at the end of a month (November), registration takes effect from the first day of the second month following that month.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Assuming registration starts immediately or on the notification deadline.

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA TX — Taxation Practice Exam 5

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