Tx notes fa22 Final

June 2023 to March 2024 exams
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34.
 
Geewizz Ltd 
Geewizz Ltd commenced trading as a manufacturer of children’s toys on 1 April 2022 and 
immediately registered for VAT. The company is in the process of completing its VAT return for the 
quarter ended 31 March 2023.
All of Geewizz Ltd’s sales are standard rated. It has recently been su
ff
ering some debt collection 
problems with a number of slow paying customers and irrecoverable debts where customers have 
not paid. At present, the company does not use the cash accounting scheme.
Geewizz Ltd’s first three VAT returns were submitted on 20 August 2022, 26 October 2022 and 25 
January 2023 respectively. The VAT payable in respect of the second and third returns was not paid 
until 11 November 2022 and 5 March 2023 respectively.
(a)
Explain the implications if the VAT return and the VAT payable for the quarter ended 31 
March 2023 are not submitted to HMRC until 20 May 2023. 
(b)
State the conditions that Geewizz Ltd needs to satisfy before it will be permitted to use 
the cash accounting scheme or the annual accounting scheme and explain the 
advantages of using either scheme.



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June 2023 to March 2024 exams
Watch free ACCA TX lectures
35. Groups
Explain the circumstances in which companies may enter into a group VAT registration and 
state the advantages and disadvantages of joining a group VAT registration. 
36. Jim 
Jim is required to make payments on account. His income tax payable by self assessment for 
2021/22 was £5,100.
His income tax payable by self assessment in 2022/23 is £7,629, and he has a capital gains tax 
liability for the year of £1,000.