Cassie began trading on 1 July 2020. For the 7 months to 31 January 2021, she...
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Cassie began trading on 1 July 2020. For the 7 months to 31 January 2021, she made potentially taxable supplies (standard rated) totalling £56,500, and zero-rated supplies amounting to £20,000. Over the next 2 months she made the following supplies: Standard rate Zero rate 12,500 1,500 11,400 2,600 February 2021 March 2021 Required: a) On what date did Cassie's turnover exceed the VAT Registration limit? Provide your workings and an explanation. [3 marks] b) By what date should Cassie notify HMRC? c) From what date will she be registered? [1 mark] [1 mark] d) VAT is generally regarded as a regressive tax. Explain, with examples, what is meant by the term 'regressive' with reference to VAT in the UK. [ 5 marks] Cassie began trading on 1 July 2020. For the 7 months to 31 January 2021, she made potentially taxable supplies (standard rated) totalling £56,500, and zero-rated supplies amounting to £20,000. Over the next 2 months she made the following supplies: Standard rate Zero rate 12,500 1,500 11,400 2,600 February 2021 March 2021 Required: a) On what date did Cassie's turnover exceed the VAT Registration limit? Provide your workings and an explanation. [3 marks] b) By what date should Cassie notify HMRC? c) From what date will she be registered? [1 mark] [1 mark] d) VAT is generally regarded as a regressive tax. Explain, with examples, what is meant by the term 'regressive' with reference to VAT in the UK. [ 5 marks]
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a To determine the date when Cassies turnover exceeded the VAT Registration limit we need to calculate her cumulative taxable turnover for the relevan... View the full answer
Related Book For
International Financial Reporting A Practical Guide
ISBN: 978-1292200743
6th edition
Authors: Alan Melville
Posted Date:
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