June 2023 to March 2024 exams Watch free ACCA TX lectures
33. VAT (a) Kite Ltd started trading on 1 December 2022, and its forecast turnover is as follows:
Assume that the quarterly sales figures accrue evenly within the period.
Advise Kite Ltd when it should register for VAT and when HMRC should be notified. (b) Cart Ltd is registered for VAT, and its sales are all standard rated.
The following information relates to the company’s VAT return for the quarter ended 31
December 2022:
1.
Standard rated sales amounted to £240,000. Cart Ltd o
ff
ers its customers a 5% discount for
prompt payment, and this discount is taken by half of the customers.
2.
Standard rated purchases and expenses amounted to £71,280. This figure includes £960 for
entertaining UK customers.
3.
On 15 December 2022 the company wrote o
ff
irrecoverable debts of £4,000 and £1,680 in
respect of invoices due for payment on 10 May and 5 August 2022 respectively.
4.
On 30 December 2022 the company purchased a motor car at a cost of £32,900 for the use of
a director, and machinery at a cost of £42,300. Both these figures are inclusive of VAT. The
motor car is used for both business and private mileage.
Unless stated otherwise, all of the above figures are exclusive of VAT.
Calculate the amount of VAT payable by Cart Ltd for the quarter ended 31 December 2022. £ One month ended 31 December 2022
27,000
Quarter ended 31 March 2023
90,000
Quarter ended 30 June 2023
68,000
Quarter ended 30 September 2023
81,000
