ITX old mock FA13

Jules18 Settling In NicelyRegistered, Tutor Posts: 102
Hi just a quick query concerning Task 6 where the adjustment has to be made for VAT claimed on a company car. I can see that VAT cannot be reclaimed because it does not specifically state that it is a pool car. I can see that the VAT input is reduced and the sum added to purchases to gross. This gives the Box 7 answer £213709 - although I suggest that this is incorrect as this should be the NET figure (Checked this with HMRC VAT Helpline) but I cannot see where the alternative answer of £169025/30 comes in. Could it be that the examiner has decided that vehicles are not purchases in the true sense of goods for resale but non-current assets? Any ideas would be welcome.

Thanks in advance


  • Jules18
    Jules18 Settling In Nicely Registered, Tutor Posts: 102
    I see that no one can explain the alternative answers in FA2013. How about the discrepancy in the same task FA2014 and FA2015? One has a van and car included and one has just the car. Allowing for the fact that you can normally reclaim on a commercial vehicle such as a van this can be seen as a red herring (or hareng rouge for our continental cousins) you are left with the car in both cases. Both mocks model answers remove the VAT from Box 4 (I can understand that) but one adds it to Box 7 and the other does not - WHY?. Was there a change in the Finance Act that was not reflected in the reference material supplied for the exam?

    Any help in explaining this would be welcome.
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