Question
Analise is currently registered for VAT. She sells fitness equipment to local businesses and individuals. She needs professional assistance to complete her return for the
Analise is currently registered for VAT. She sells fitness equipment to local businesses and individuals. She needs professional assistance to complete her return for the quarter to 31 December 2019 and has asked for your help.
You have identified the following transactions for VAT purposes in quarter ended 31 December 2019.
Sales (excluding VAT and discounts)
Fitness equipment 97,000
Disposal of plant and machinery 23,000
An early payment discount of 3.5% is offered to customers if they pay within one month of their invoice date. 70% of the customers take up this offer.
Purchases (including VAT)
Inventories 63,000
Computer for use in the business 3,100
Car for Analise used 50% for the business 27,000
Analise has not been very well recently and wasnt able to submit her 31 December 2019 VAT return by the due date. Instead she filed it on 1 March 2020.
Required:
- Calculate the total VAT due to or from HMRC at the end of the quarter 31 December 2019, stating the due date for the VAT return and payment.
(3 marks)
- Discuss the consequences of both filing a late VAT return and making a late payment of VAT to HMRC.
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