Tax Processes for Businesses Assessment

PG2025

Hello All.
I have found some questions poorly worded, making them difficult to interpret. This is in regards of my Tax Processes assessment (Level 3 Diploma in accounting)

The first question concerned a company registered under the Annual Accounting Scheme with monthly VAT payments. The company registered for VAT in January 2024, and by December 2024, its total VAT liability was £87,500. I struggled to determine how the rules for monthly payments should be applied. The answer choices provided were £6K, £15K, and £20K, but based on the standard calculation of 10% or the expected monthly payment amount (calculated from the total VAT liability of £87,500), I arrived at a different figure. This left me uncertain about both the wording and accuracy of the question.

I encountered two other problematic questions:

1. Net Salary Calculation Issue: The exercise showed an annual salary of £20K or £25K, with deductions for pension, income tax, and National Insurance. The final net total was £16K, yet a later question stated that the monthly salary was £9K. This does not make sense—how can someone with a £20K annual salary receive £9K per month?

2. Flat Rate VAT Reconciliation Issue: The company was registered under the Flat Rate VAT scheme with a 12% rate. The VAT return showed a payment of £3,972, while the VAT liability in the accounts was £5,100. Based on the provided sales details (Standard rate net: £25,000 + VAT: £5,000; Reduced rate net: £2,000 + VAT: £100; Zero rate: £1,000 + VAT: £0), the total sales including VAT were £33,100. Applying 12% results in £3,972. The assessment asked me to reconcile this amount with the accounting liability (£5,100). However:

o This is not a reconciliation between cash and accrual, where differences are expected.

o If the VAT liability in the accounts is incorrect, this is an accounting error requiring a journal correction, not a reconciliation.
In my view, this misinterprets the concept of reconciliation—it should be about correcting an error, not justifying a mismatch.

Previous Attempts to Seek Support
I have already submitted a message on the AAT site regarding these issues. However, the responses I have received from AAT assistants seem random and do not directly address my concerns. This has made it difficult to get clear guidance on the issues I have raised.

Impact on My Studies and Future Plans
Following my assessment results, I have been studying the mock tests from First Institution to improve my understanding. My mock test score for Tax Processes for Businesses is 81%.

Just for let you know I have finish my assessment in Financial Accounting: Preparing Financial Statements (AAT) and I achieved 78%, which reinforces my confidence in my accounting knowledge.

I have finished the level 2 and I have my certificated. My rate was 79%.

Request for Clarification and Support
I would appreciate any guidance on how I can seek further clarification regarding these assessment questions or if there is a way to review my responses. If there is a process for appealing or requesting feedback, I would be grateful for details on how to proceed.

Thank you for your time and assistance. I look forward to your response.

anony123

The tax processes I think was the hardest and that is the only one I failed. I got 67 and after my resit I achieved 85. My advice would be to head onto first intuition on YouTube, because they gave me so much information to help me pass my exam. Sorry I cannot remember much though.

wilburnet

Hello, in response to the OP are you referring to questions that are in one of the two AAT Mocks on the online portal, or are you on about the actual exam you took?

PG2025

Anony123, thank you for your support.
Wilburnet, In my opinion, these questions are poorly worded, making them difficult to interpret. However, they are from the AAT questions.

anony123

Hey, go to first intuition and enter tax processes. Everything comes up in those videos.

anony123

I watched his clips as well @wilburnet.