AAT Level 3 - Tax Processes for Business (TPFB) FA23 Mock Exam Walkthrough - Part 2

[@saman7468]

Excellent thank you. it's very helpful.

[@at-oh4ws]

Exam starting in a few hours and I have found this jem!!

[@Willboardman]

Good luck!

[@Spaniapen]

Thanks for this, I’ve been following all your videos which helped a lot 🙏

[@wailinesao]

Thank you Will its really very useful.

[@MrSayNoMore03]

Hi Will - for task 7 would it be correct in saying the amount payable to / from hmrc is also the difference between taxable gross pay and net pay?

[@ajb5114]

7:10 If one value is understated and the other is overstated, what would be the net difference? Should we add them together or subtract them? Thanks

[@Willboardman]

So as an example scenario lets say the output tax was overstated and the input tax was understated then both would result in claiming back VAT from HMRC and therefore you would increase box 4. The figure would be the two errors add together as you'd have overpaid HMRC in terms of output tax and under-claimed from HMRC in input tax, add the two together and you'd get the net amount to add to box 4.

[@mariannamorenoverlengieri1398]

your videos are super helpful!! thank you very much :)

[@Happy_Nat007]

Geat video, so helpful - thank you

[@ajb5114]

41:49 The 12% VAT calculation is £3407.14. However, if we multiply by 12 and then take the percentage, it's £3816. Your answer matches AAT's. If we calculate at the standard 20% VAT rate the same way, the answer would be incorrect. Both my calculation and the VAT calculator show £3407.14.

[@Willboardman]

The answer being £3,816 is calculated based upon VAT taxable turnover. This would therefore be (£26,500 + £5,300) = £31,800 x 12% = £3,816. If you then want to work this back to the standard VAT rate it would be £31,800 / 120 x 20 = £5,300.

[@ajb5114]

@@Willboardman Thank you for your prompt replies. I was pleasantly surprised by the quick response. I was disappointed with my score of 69%, as the questions didn't seem similar to the practice assessments. I believe I needed more time and didn't manage my time well during the test. If I had just 10 more minutes, I am confident I would have passed. One and a half hours are not enough; there are so many questions.

[@hamzanaveed8266]

Thanks Will 👍

[@nilankarukmal6892]

Thanks Will

[@MAGGIE-PL-UK]

thanks Will !

[@cuteotter2165]

Thank you :)

[@smoodcruz]

Hi Will, Is there a difference between the: reporting threshold and : error correction reporting threshold?

[@Willboardman]

Hi - they’re referring to the same thing :)

[@smoodcruz]

@@Willboardman In a mock exam; I got this similar question: A VAT registered business has discovered a non-deliberate error of 11,500 made in its previous VAT return the total of sales excluding any bad included on the current VAT return is 650,000. Question identify the error correction reporting threshold for the business is it: A. 6.500 ✅ B. 10,000 C. 11,500 D. 50,000 It shows answer as 6.500. Rather than 10,000. I selected 10, 000 ❌ which they said was the wrong answer. …what is going on?😕

[@Willboardman]

How strange… I’d have put 10,000 too so couldn’t help you on that one!

[@ajb5114]

@@smoodcruz This could be an international publication. Different thresholds may be applied.

[@mysticjen379]

@@Willboardman Is it because it's either 10,000 or 1% of the total 650,000 which is 6,500? Just my thoughts, could be wrong! And from that we can see that the error is 11,500 which takes them over on both counts anyway (10,000 or 1%) so they wouldn't be able to correct it on the current VAT return. The AAT can be sneaky sometimes with the way they word things, can't they!