Nadia runs her own bakery business and she is registered for VAT. She has provided you...

 

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Nadia runs her own bakery business and she is registered for VAT. She has provided you with the following information for the quarter ended 31 December 2020 in order to prepare her VAT return: Sales: Sales of fudge (standard rated) Sales of bread (zero-rated) Note 48,900 23,100 24,450 Sales to business customers () Purchases: Ingredients (standard rated) Ingredients (zero-rated) Purchase of a new oven (standard rated) Wages (i) 21,900 (iii) (iv) 7,125 1,800 2,820 Notes: (1) All sales to business customers are standard rated. Nadia gives her business customers a discount of 4%. The figure above is stated before any discount. (ii) Included within this figure is chocolate costing £400 for which Nadia has lost the receipt. (ii) During the period Nadia purchased a new oven which is used 10% of the time for private use. (iv) Nadia has a part time employee who runs the shop on a Saturday. During the period Nadia also sold her old oven for £1,080 including VAT at the standard rate. There was no private use on this item. All figures are exclusive of VAT unless stated otherwise. Requirements (a) Calculate the VAT due to HMRC for the quarter ended 31 December 2020. Show all your workings clearly and note any items excluded from the calculation. (7 marks) (b) State six pieces of information that Nadia must show on her invoices for VAT purposes. Nadia runs her own bakery business and she is registered for VAT. She has provided you with the following information for the quarter ended 31 December 2020 in order to prepare her VAT return: Sales: Sales of fudge (standard rated) Sales of bread (zero-rated) Note 48,900 23,100 24,450 Sales to business customers () Purchases: Ingredients (standard rated) Ingredients (zero-rated) Purchase of a new oven (standard rated) Wages (i) 21,900 (iii) (iv) 7,125 1,800 2,820 Notes: (1) All sales to business customers are standard rated. Nadia gives her business customers a discount of 4%. The figure above is stated before any discount. (ii) Included within this figure is chocolate costing £400 for which Nadia has lost the receipt. (ii) During the period Nadia purchased a new oven which is used 10% of the time for private use. (iv) Nadia has a part time employee who runs the shop on a Saturday. During the period Nadia also sold her old oven for £1,080 including VAT at the standard rate. There was no private use on this item. All figures are exclusive of VAT unless stated otherwise. Requirements (a) Calculate the VAT due to HMRC for the quarter ended 31 December 2020. Show all your workings clearly and note any items excluded from the calculation. (7 marks) (b) State six pieces of information that Nadia must show on her invoices for VAT purposes.