Mrs. Jones, a sole trader who is registered for VAT, has traded as a manufacturer of standard-rated items since 1 June 2003.  She has decided to retire on 31 May 2019, her 65^th birthday and you are asked to finalize her tax position up to that date.  You are provided with the following information:

1. Mrs. Jones has always prepared accounts to 31 May each year.  Overlap profits of      £37,500 arose on commencement.

 

2. The last accounts will be for the year to 31 May 2019.  Interim accounts have been prepared to 28 February 2019, revealing the following:

      £

Sales		100,200
Cost of sales		24,700
Gross profit		75,500
Expenses		29,000
Net profit		46,500

 

All of the above figures are net of VAT and contain no disallowable items for income tax purposes.

 

3. For the last three months to 31 May 2019 (which is also the last VAT quarter), you have extracted the following figures from the accounting records:

                                                                                                £

                   Sales:                                                                     

                  To UK customers                                             30,654

                  To overseas (non-EU) customers                    8,000

                  Materials purchased:                                           

                   Standard rated                                                  4,098

                  Zero-rated                                                         2,000

Exempt           800 Expenses:           

                   General (all standard rated)                             6,120

                   Wages                                                              7,000

                   Hire of machinery (standard rated)                    612

                  Business bank charges (exempt)                      500

                   Entertaining UK clients                                      400

 

All of the above include VAT if appropriate.  There was no stock at 1 March 2019 and there is no outstanding stock left at 31 May 2019.  All of the general expenses are allowable for income tax purposes.

 

4. The tax written down value of the plant and machinery carried forward after capital allowances had been calculated for the year to 31 May 2018 was:

     £

             Plant and machinery main pool                                  12,375

             Special rate pool (car with no private use)                  5,250

 

             No plant and machinery was acquired during the year to 31 May 2019.

 

                                                                                                                                      

5. The business was sold as a going concern (to another taxable person) on 31 May 2019.  The items sold were: 

	£
Freehold shop	200,000
Freehold workshop	130,000
Goodwill	180,000
Plant and machinery	25,000
Car	6,000

 

The shop and the workshop were acquired on 1 June 2003 for £30,000 and £21,000 respectively.  All of the items of plant and machinery were sold for less than original cost. No previous claims for entrepreneurs relief have been made.

 

Required:

 

        (a) Calculate the VAT due for the quarter to 31 May 2019                              

(b) Calculate the final adjusted taxable profit for the year to 31 May 2019, after

                deduction of capital allowances                                                                 

         (c) Calculate Mrs. Jones’s trading income for 2019/20                                   

(d) Calculate the capital gains tax due on the disposal of the business, claiming all reliefs that are available to her.  Mrs. Jones has no other disposals in 2019/20 and has no capital losses brought forward.