AAT Level 3 - Tax Processes for Business (TPFB) Mock Exam Walkthrough - Part 1

[@laura2308]

Failed my tax exam first time, watched this to help me understand the exam more and it really helped, passed my exam this morning 🎉 thank you for your help.

[@Willboardman]

That’s excellent news! Congratulations on passing your exam!

[@nezha4775]

This guy saves me 4 times a year

[@sumayyah_bx]

hey, do you think you’d be able to go over a practice assessment for the tax processes for businesses for assessments from the 29th of January 2024 as I find your videos very useful!! If you’d be able to go through it for the week coming that would be incredibly helpful 😊

[@lee-wood]

Another great vid!!!

[@a.f2405]

Much appreciated. I do have exam booked was so nervous. After watching this got bit confident as wasn’t aware of the reference material before am sure that will help in exam

[@tubbztownitfc182]

Thank you for your great explanations and insight on the answers to questions, it gave me greater understanding on areas I needed to strengthen in. I passed my exam this morning 🎉

[@Willboardman]

Fantastic news, congratulations on passing your exam!

[@K10jak]

33:31 Why are we assuming the payment is correct and the invoice incorrect? How do we know Jaz has not made an error, what document is Jaz using? Bank statment/feed? Has Salt paid the supplier before receiving the invoice? I can't work out the scenario?

[@Willboardman]

So you’ve just got to go off the information provided, it doesn’t mention anything about the payment being incorrect and if it’s given you two VAT amounts we can safely assume one of these is wrong, it’s not feasible for both to be correct when it states that the invoice is at standard rate. As we’ve only been given the one invoice amount you’d need to calculate the VAT on the invoice and then match that up with the amount on system (which it does work out to be for the correct amount) and then match it up with the invoice where we can see the amount of VAT differs and there must be the incorrect VAT amount.

[@K10jak]

@@Willboardman I think for me here, the key is in not being told the payment is incorrect and assuming the payment is correct. Thanks so much for replying! And thank you for your videos! I am taking in lots of new info as these mocks are different to the ones up now for the same Q2022 (I believe). My exam is monday!

[@K10jak]

37:10 This is why I have major problems with exam wording. It says the company is ELIGIBLE for cash accounting, well, because they are 'eligible' that doesn't mean they 'actually are' on cash accounting. How do I know they are not on standard, but are eligible for cash accounting? I just don't get it. I can work out the sums any which way, but I just don't know how to understand the meaning of the question.

[@Willboardman]

On this I don’t disagree with what you’re saying, all I would say is that they’re not going to put that in the question to trip you up. I do agree just because they’re eligible technically doesn’t mean they’re going to use it but if AAT have specifically put that within the question I would assume they’re using it.

[@K10jak]

@@Willboardman That is SUCH a good point!! I never thought about that! My usual tactic is when I don't understand the question, I generally try to use all the numbers in the question until I get an answer I think they want lol. I generally go with the flow, but I'm losing marks. And as these exams appear to get harder, I need to understand their meaning better. I think I will apply the theory to the words, if they give you information use that too. Thank you SO much for your help again! I'm currently exasperated.

[@elanan7113]

Failed my exam firts time, second time it did not upload on aat system so i had to take it for a third time after a long gap and have to say massive thanks cos i passed today. Videos are super helpful and material is very nicely explained, keep up the great work 😊

[@pressplay1703]

congratulations, i have my exam tomorrow, fingers crossed.

[@AgnesAgnes1]

Hi Will, I love your videos, they are super helpful and clear! So thank you! Just a quick question about the Flat Rate scheme and capital expenditure at 12:11 you said “any purchase over 2000 PLUS vat”. So you’re saying that it has to be 2000 exclusive of vat, whereas in my study book it says “2000 including vat”. Could you please confirm which one it is? Thank you again!

[@Willboardman]

Hi! Glad you’re enjoying the videos. Yes that’s my mistake, it should actually be 2000 including VAT!

[@albanianking6402]

Massive thank you for doing such a video covering this. I think on the practise exam 1 on the aat website there is a question regarding reconciling vat return. Can’t seem to get my head round it and the text books I’m using don’t really cover the question for something.

[@lee-wood]

For task 4 question 1 - I knew the rates were calculated at 20 and 5 % - but how do I know that the error was the invoice and not "Jaz" entering the wrong vat rate? As far as I can tell theres no way to know which is intended to be correct for the question? It could equally be answerd as the invoice is correct and the rate used was 5% couldnt it?

[@gingergirl7039]

thanks! Can you do mock 1 as well? :)

[@nilimabegum-rahman6876]

Thank you so much these test sessions. They are very helpful. However, is their a cash account VAT return session available? Many thanks again.

[@B-qg5do]

A very big thanks for the mock exam videos, they are extremely useful however, I have a query: Task 2 (a) (i) asks for the calculation of a Reduced Rate VAT (5%) for a Total figure of £420. Your calculation of £420 / 105 =x 100 = a net figure of £400 and £ VAT of £20. Using a different calculation £420 / 100 (= £4.20 ie. 1%) x 5 = £21 VAT and a net figure of £399. Can you please confirm that your calculation is the one I should use in the exam which is coming up very shortly. Many thanks

[@Willboardman]

Hi, glad you’ve found the videos useful :). You’ll need to use the method I’ve demonstrated in the video, the total equates to 105%, so the get 1% you need to divide by 105 rather than 100.

[@a.f2405]

Just quick question have you made mock 1 as I haven’t seen that on your list?

[@Willboardman]

Ah no so at this moment in time I’ve only done mock 2 :)

[@lindakirby2540]

Such a helpful video, thanks. I have my exam tomorrow. In task 2 when you calculated the 30 days including the date of the sale, would you do this for registering for VAT within 30 days with the future test? If you went over on say 5th May, would you include 5th May in the 30 days for registering with HMRC?

[@Willboardman]

Welcome as always :)! That’s correct, so you’d include the day on which you found out :)! So say the business secured the contract on the 5th May and that contract would take them over the threshold you’d start counting the 30 days from the 5th May including the 5th as day 1.

[@lindakirby2540]

@@Willboardman Brilliant, thanks so much for that and for replying so quickly. 🙂

[@kanchantamang-s5q]

Let’s see if I pass after watching this cideo

[@kanchantamang-s5q]

Let’s see if I pass after watching this video

[@kanchantamang-s5q]

Let’s see if I pass after watching this video