Question 5 a. The VAT system offers a number of special schemes which are intended to simplify the workings of the VAT system, especially for small businesses. Discuss the following VAT special schemes 1. Cash accounting scheme (7 marks) 2. Annual accounting scheme (7 marks) b) Hove Ltd started trading on 1 July 2020. Following sales were recorded in the first four months of trading July August September October 23,000 39,000 140.000 110.000 On 1" September 2020. Hove Ltd signed an agreement to supply goods worth 90,000 til end of September 2020. The company supplies only standard rated goods and all the above figures are exclusive of VAT. Some of the sales made by Have Lid are credit sales where customers were provided Services and were given 60 days to settle their payment. The accountant who is a fresh graduate has expressed confusion regarding tax point for services. He is not sure whether the date services are provided or the date payment is received should be treated as tax point Required: Advise Hove Ltd regarding the date it is required to register and by when it was required to notify HMRC. Also briefly explain the principles regarding tax point of supply of services. (6 marks) (Total: 20 marks)