Sandra Jackson has been a self-employed builder since 2000. She registered for VAT on 1 January 2022 and is in the process of completing her VAT return for the quarter ended 31 March 2022. The following information is relevant to the completion of this VAT return:

(1) Sales invoices totaling 44,000 (excluding VAT) were issued to VAT registered customers in respect of standard rated sales. Sandra offers her VAT registered customers a 5% discount for prompt payment and 50% of customers took the discount.

(2) Sales invoices totaling 16,920 were issued to customers that were not registered for VAT. of this figure, 5,170 was in respect of zero-rated sales with the balance being in respect of standard rated sales. In this case, standard rated sales are inclusive of VAT.

(3) On 10 January 2022, Sandra received a payment on account of 5,000 in respect of a contract that was completed on 28 April 2022. The total value of the contract is 10,000. Both figures are inclusive of VAT at the standard rate.

(4) Standard rated materials amounted to 11,200 of which 800 were used in work on Sandras private residence (VAT inclusive).

(5) Since 1 December 2020, Sandra has paid 120 per month for the lease of office equipment. This expense is standard rated (VAT inclusive).

(6) During the quarter ended 31 March 2022, 400 (VAT inclusive) was spent on mobile telephone calls, of which 30% relates to private calls. This expense is standard rated.

(7) On 20 February 2022, 920 (VAT inclusive) was spent on repairs to a motor car. The motor car is used by Sandra in his business, although 20% of the mileage is for private journeys. This expense is standard rated.

(8) On 15 March 2022, equipment was purchased for 6,000 (VAT inclusive). The purchase was partly financed by a bank loan of 5,000. This purchase is standard rated.

Unless otherwise stated, all the above figures are exclusive of VAT.

Required:

1. Calculate the amount of VAT payable by Sandra for the quarter ended 31 March 2022.

(15 marks)

2. Explain the main features and advantages of joining of Flat rate accounting scheme

(10 marks)