Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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,

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]

Step by Step Solution

3.47 Rating (167 Votes )

There are 3 Steps involved in it

Step: 1

a To determine the date when Cassies turnover exceeded the VAT Registration limit we need to calculate her cumulative taxable turnover for the relevan... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Financial Reporting A Practical Guide

Authors: Alan Melville

6th edition

1292200743, 1292200766, 9781292200767, 978-1292200743

More Books

Students also viewed these Accounting questions

Question

What is meant by disparity in sentencing?

Answered: 1 week ago