Silver Ltd is a UK resident company and is registered for VAT. The relevant information for...
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Silver Ltd is a UK resident company and is registered for VAT. The relevant information for Silver Ltd for the three months to 31 March 2020 is as follows: Sales Standard rated sales to UK customers Exempt supplies Sales to non VAT registered customers in the EU Sales to VAT registered customers in the EU Input VAT Relating to standard rated supplies Relating to zero rated supplies £ 1,200,000 800,000 50,000 40,000 80,000 10,000 Relating to exempt supplies Non attributed 90,000 25,000 All sales are stated exclusive of VAT. In addition to the above, Silver Ltd bought a new car for a salesman at a cost of £32,000 including VAT and a packaging machine costing £55,000 including VAT, the machine replaced an older version which was sold for £6,000 excluding VAT. Requirements: (a) Calculate the VAT payable by Silver Ltd for the three months ended 31 March 2020. For each non-UK item, state the reason For your treatment. VALUE ADDED TAX Standard rate Registration limit Deregistration limit 20% £85,000 £83,000 INHERITANCE TAX: Nil rate band Residence nil rate band £325,000 £150,000 Rate of tax on excess | Lifetime rate Death rate 20% 40% Taper relief Years before death Over 3 but less than 4 years Over 4 but less than 5 years Over 5 but less than 6 years Over 6 but less than 7 years Percentage Reduction 20% 40% 60% 80% CAPITAL GAINS TAX Residential Normal Rate Property 10% Lower rate Higher rate 18% 20% 28% Annual exempt amount £12,000 Entrepreneurs' relief Lifetime Limit Rate of Tax £10,000,000 10% Silver Ltd is a UK resident company and is registered for VAT. The relevant information for Silver Ltd for the three months to 31 March 2020 is as follows: Sales Standard rated sales to UK customers Exempt supplies Sales to non VAT registered customers in the EU Sales to VAT registered customers in the EU Input VAT Relating to standard rated supplies Relating to zero rated supplies £ 1,200,000 800,000 50,000 40,000 80,000 10,000 Relating to exempt supplies Non attributed 90,000 25,000 All sales are stated exclusive of VAT. In addition to the above, Silver Ltd bought a new car for a salesman at a cost of £32,000 including VAT and a packaging machine costing £55,000 including VAT, the machine replaced an older version which was sold for £6,000 excluding VAT. Requirements: (a) Calculate the VAT payable by Silver Ltd for the three months ended 31 March 2020. For each non-UK item, state the reason For your treatment. VALUE ADDED TAX Standard rate Registration limit Deregistration limit 20% £85,000 £83,000 INHERITANCE TAX: Nil rate band Residence nil rate band £325,000 £150,000 Rate of tax on excess | Lifetime rate Death rate 20% 40% Taper relief Years before death Over 3 but less than 4 years Over 4 but less than 5 years Over 5 but less than 6 years Over 6 but less than 7 years Percentage Reduction 20% 40% 60% 80% CAPITAL GAINS TAX Residential Normal Rate Property 10% Lower rate Higher rate 18% 20% 28% Annual exempt amount £12,000 Entrepreneurs' relief Lifetime Limit Rate of Tax £10,000,000 10%
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VAT payable Output VAT payable Input VAT claimable Output VAT payable 1 Standard rated sales to UK c... View the full answer
Related Book For
Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott
Posted Date:
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