AAT TPFB study guide
AAT TPFB · Work through your exam, one topic at a time.
Tax Processes for Businesses (TPFB) is a unit within the AAT Level 3 Diploma in Accounting, aimed at people who already have a grounding in bookkeeping and who now need to handle indirect tax and payroll in a working finance role. It suits accounts assistants, bookkeepers and payroll administrators who post VAT and payroll entries and deal with HMRC on a routine basis. The AAT TPFB study guide has 4 sections and about 1,347 words.
01Principles of VAT: registration, categories, invoicing and records
A business must register for VAT once its taxable supplies (standard-, reduced- and zero-rated sales, but not exempt or outside-scope income) pass the threshold - £90,000 of turnover in any rolling 12 months (from 1 April 2024), with deregistration at £88,000. Two tests matter: Backward look: if, at the end of any month, taxable supplies for the previous 12 months exceed the threshold, notify HMRC within 30 days; registration takes effect from the first day of the second month after that month end.
346 words, about 2 min02Preparing and completing VAT returns, adjustments, submission and payment
Under accrual (invoice) accounting , output tax arises at the tax point (normally the invoice date) and input tax is claimed when a valid VAT invoice is received. Cash accounting (join up to £1.35m turnover, leave at £1.6m) uses payment and receipt dates.
332 words, about 2 min03Principles of PAYE, NIC and statutory payments
PAYE collects income tax through the payroll using a tax code. The standard code uses the personal allowance (£12,570): 20% up to £37,700 of taxable pay, 40% to £125,140, then 45%.
308 words, about 2 min04Processing payroll transactions and reporting to HMRC
Payroll data is reported to HMRC through Real Time Information. A Full Payment Submission (FPS) must be sent on or before each payday , showing each employee's pay, tax, NIC, student loan, statutory payments and hours worked.
361 words, about 2 min