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Quiz: Do you understand VAT and bad debts?

Related article: What happens if you pay VAT to HMRC but never receive the VAT back from your client? You may be able to reclaim the VAT.

Quiz: Do you understand VAT on discounts?

Try this quiz to see if you can calculate VAT on discounts. To answer, check a tick box against one of the options below and click submit to reveal the answer. 

A supplier offers a customer a trade discount of 10% for orders over £500, and a prompt payment discount of 2.5% if the invoice is paid within seven days. The customer places an order for £600 (net) and pays within seven days. The amount the customer pays is:

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