ACCA Advanced Taxation (ATX) Practice Exam

What is the threshold for VAT registration for partnerships in a 12-month period?

1. £75,000

2. £85,000

3. £100,000

4. £90,000

The correct answer is: £85,000

The threshold for VAT registration for partnerships, as well as for other types of businesses, is set at £85,000 in the UK for a 12-month period. This means that if the taxable turnover of a partnership exceeds £85,000 at any point in the past 12 months, it is required to register for VAT. This registration threshold is important, as businesses that exceed it must comply with VAT regulations, including charging VAT on their sales, filing VAT returns, and keeping appropriate records. Partnerships, like other business structures, must monitor their turnover closely to ensure compliance with VAT laws. While £75,000, £100,000, and £90,000 may reflect other figures relevant in different contexts or time periods, the current and applicable threshold for VAT registration remains £85,000. This specific figure is established by HM Revenue and Customs (HMRC) and must be adhered to by partnerships to avoid penalties and ensure proper tax obligations are met.