Quiver Ltd is VAT-registered. During the quarter to 31 March 2024, the company made the following supplies
Question:
Quiver Ltd is VAT-registered. During the quarter to 31 March 2024, the company made the following supplies of goods and services:
The company also suffered the following input tax during the quarter:
The input tax which is attributed to taxable supplies includes £1,710 in relation to the purchase of a motor car on 1 January 2024 and a further £180 in relation to the fuel used by this car during the quarter. The car has emissions of 198g/km and is used for both business (70%) and private (30%) motoring and the company pays all fuel costs.
Unattributed input tax includes £620 of input VAT on UK customer entertaining costs and £590 of VAT on staff entertaining costs.
Required:
Calculate the VAT liability of Quiver Ltd for the three months to 31 March 2024 and explain why this calculation is provisional. (CIPFA)
Step by Step Answer: