$3\mathrm{.}1)$ Thames Water Ltd is registered for VAT and is in the process of completing its VAT

return for the quarter ended $31$ March $2023.$ The following information is available, and

unless otherwise stated, all the above figures are exclusive of VAT:

i$.$ Sales invoices totalling $128,000$ were issued in respect of standard rated

sales. Thames Water Ltd offers its customers a $2\mathrm{.}5\%$ discount for prompt

payment, $50\%$ of customers pay early enough to receive this discount.

ii$.$ Standard rated expenses amounted to $74,800.$ This includes $4,200$ for

entertaining customers.

Required: Calculate Thames Water VAT liability for the quarter ended $31$ March $2023.$

State the date the VAT would be payable to HMRC and the date by which the VAT$100$

return must be filed.

$(7$ marks$)$

$3\mathrm{.}2)$ Early in February $2022$ Vera was told that she would be made redundant, this

happened on $6$ April $2022.$ The severance package that she received in $2022/23$ was:

Statutory redundancy $4,000$

Non$-$statutory redundancy, ex gratia $20,000$

Signing a non$-$disclosure$/$non$-$competition agreement $10,000$

Required: Outline the tax treatment of the redundancy package and explain how the tax

liability on the redundancy package could have been reduced if the $34,000$ has been split

differently.

$(7$ marks$)$

$3\mathrm{.}3)$ You work for the Chartered Accountancy firm Bevan&Bevan Ltd$,$ which has, for many

years, been engaged to perform accounting and corporation tax work. Currently, you have

discover that some practices are incorrect, and some behaviours could even be label as

tax evasion.

Required: Explain the code of conduct and its importance for preventing such behaviours

and actions that could be taken.