Shelly Johnson has been a self-employed builder since 2000. He registered for VAT on 1 January 2021 and is in the process of completing his VAT return for the quarter ended 31 March 2021. The following information is relevant to the completion of this VAT return: 

(1) Sales invoices totalling £64,000 (excluding VAT) were issued to VAT registered customers in respect of standard rated sales. Shelly offers his VAT registered customers a 2% discount for prompt payment and 50% of customers took the discount. 

(2) Sales invoices totalling £18,920 were issued to customers that were not registered for VAT. Of this figure, £6,170 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 2021, Shelly received a payment on account of £6,000 in respect of a contract that was completed on 28 April 2021. The total value of the contract is £10,000. Both of these figures are inclusive of VAT at the standard rate. 

(4) Standard rated materials amounted to £11,200 of which £1,000 were used in work on Shelly’s private residence (VAT inclusive). 

(5) Since 1 December 2019, Shelly has paid £200 per month for the lease of office equipment. This expense is standard rated (VAT inclusive). 

(6) During the quarter ended 31 March 2021, £300 (VAT inclusive) was spent on mobile telephone calls, of which 20% relates to private calls. This expense is standard rated. 

(7) On 20 February 2021, £1200 (VAT inclusive) was spent on repairs to a motor car. The motor car is used by Shelly in his business, although 20% of the mileage is for private journeys. This expense is standard rated. 

(8) On 15 March 2021, equipment was purchased for £6,000 (excluding VAT). The purchase was partly financed by a bank loan of £5,000. This purchase is standard rated. Unless otherwise stated, all of the above figures are exclusive of VAT. 

Required: 

(a) Calculate the amount of VAT payable by Shelly for the quarter ended 31 March 2021. 

(b) Explain the main features of Flat rate accounting scheme.