Friday Quiz - 15/5/2020 - Quiz & Trivia

1. 'Food Glorious Food' is a song from which British musical?

Cats

Oliver

Sunshine on Leith

Sweeny Todd

2. Which BBC children's show gardens were famously vandalised in 1983?

Blue Peter

Byker Grove

Rainbow

The Really Wild Show

3. True or False: Every Business that is registered for VAT can reclaim VAT?

True

False

Contrary to popular believe, lots of businesses that are registered for VAT can't claim a penny of VAT back from HMRC. In order to claim back the VAT on your purchases, those purchases have to be used in the making of a taxable supply. As you all know (I hope by now!) sales can be exempt from VAT (as opposed to zero rated) and those sales are not taxable, so you can't claim back the VAT on any expenses that you incur in the making of those sales. Anchor Hanover makes lots of exempt sales and some taxable ones, so it can claim some, but far from all, of it's VAT back.

Explanation

Contrary to popular believe, lots of businesses that are registered for VAT can't claim a penny of VAT back from HMRC. In order to claim back the VAT on your purchases, those purchases have to be used in the making of a taxable supply. As you all know (I hope by now!) sales can be exempt from VAT (as opposed to zero rated) and those sales are not taxable, so you can't claim back the VAT on any expenses that you incur in the making of those sales. Anchor Hanover makes lots of exempt sales and some taxable ones, so it can claim some, but far from all, of it's VAT back.