At the end of which month must a business register for VAT if its taxable supplies in the rolling 12-month period exceeded £85,000 on 31 October 2023?

Answer options:

31 October 2023

30 November 2023

1 December 2023

1 January 2024

How to approach this question

Under the historic test, you must notify HMRC within 30 days of the end of the month the threshold was exceeded. Registration takes effect at the end of the month following the month the threshold was exceeded.

Full Answer

C.1 December 2023✓ Correct

Under the historic test, if the threshold is exceeded on 31 October, HMRC must be notified by 30 November. The VAT registration takes effect from the end of the month following the month the threshold was exceeded, which is 1 December 2023.

Common mistakes

Confusing the notification deadline (30 Nov) with the effective date of registration (1 Dec).

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Practice the full ACCA TX — Taxation Practice Exam 6

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