Sanjay began trading on 1 February 2022, selling standard-rated goods and services. He decided not to register for VAT voluntarily. His taxable turnover (excluding VAT) for the first 16 months of trading was as follows:

2022 £ 2022 £ 2023 £

February 2,550 August 5,430 January 10,080 March 3,660 September 6,320 February 7,920 April 3,880 October 7,410 March 6,780 May 4,240 November 11,050 April 5,100 June 4,860 December 12,270 May 4,890 July 5,290 In January 2023, he sold some machinery (which had been used as a non-current asset)

for £800. This is not included in the above turnover figures.

Sanjay is concerned that his monthly turnover has started to fall and he is considering offering customer discounts in an attempt to reverse this trend.

Required:

(a) Explain the term "taxable person" for VAT purposes.

(b) State the circumstances in which VAT registration is compulsory and explain why some persons may choose to register voluntarily.

(c) State the date by which Sanjay would be required to register for VAT. Would this be necessary if his monthly turnover for the remainder of 2023 seemed likely to continue on a downward trend?

(d) Explain the VAT consequences which would ensue if Sanjay began offering trade discounts or cash discounts to his customers.