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Chapter 23 - VAT penalties & Special Schemes - Coggle Diagram
Chapter 23 - VAT penalties & Special Schemes
Default penalty
1st: 2% tax paid (no paid if <400)
2nd: 5% tax paid (no paid if <400)
3rd: 10% (no less than 30)
4th: 15% (no less than 30)
SLN removed after 4 clean quarters
Cash accounting scheme
help reduce cash flow issue
Condition: taxable turnover (excl. VAT) not exceed 1,350,000
Give automatic loss and bad debt relief
Cease if taxable turnover exceed 1,600,000
Annual accounting scheme
Reduce administrative burden
Condition: same as cash accounting scheme
Only 1 returns required
Payment on account: 90% of previous year's net VAT liability, start on month 4
Balancing payment: with return
Cease: same as cash accounting scheme
Return submission deadline: 28.2.2020 for y/e 31.12.2019
Flat rate scheme
Condition: taxable turnover (excl. VAT) not over 150,000
1% reduction if join flat rate scheme in first year of VAT reg
Simplify calculation of VAT
No VAT input recover
VAT payable = total turnover (VAT inclusive of taxable supplies turnover + exempt supplies) * flat rate %