Diana is a sole trader. She has the following transactions during the quarter to 31 December 2019 (all amounts shown are VAT-exclusive):

Sales to UK customers:

Standard rated25,000

Zero-rated15,000

Exports of goods:

To non-EU members12,600

To EU members (all customers are VAT register)13,400

Purchases:

Standard-rated35,400

Zero-rated6,200

Expenses:

Wages and salaries21,100

Car repairs150

Insurance230

Entertaining UK customers500

Other expenses (all standard-rated)11,200

Capital transactions:

Purchase of new plant and machinery11,000

Purchase of motor van10,400

Diana drives a car with an emission rating of 114 g/km and reclaims input tax on all of the fuel used by this car, whether for business or private motoring. She does not keep detailed mileage records.

Fuel scale charges rate for motor car with emission rating 120 gr/km or less for 3-month period is 147.

a)Calculate the mount of VAT due for the quarter.

b)Briefly explain the VAT Flat Rate Scheme, the advantages of using this scheme by small businesses and the conditions which need to be met before businesses qualify to join to this scheme?

Diana is a sole trader. She has the following transactions during the quarter to 31 December 2019 (all amounts shown are VAT-exclusive): Sales to UK customers: Standard rated 25,000 Zero-rated 15,000 Exports of goods: To non-EU members 12,600 To EU members (all customers are VAT register) 13,400 Purchases: Standard-rated 35,400 Zero-rated 6,200 Expenses: Wages and salaries 21, 100 Car repairs 150 Insurance 230 Entertaining UK customers 500 Other expenses (all standard-rated) 11,200 Capital transactions: Purchase of new plant and machinery 11,000 Purchase of motor van 10,400