Pink Time Ltd
Heyer Ltd intends to incorporate a new subsidiary, Pink Time Ltd, on 1 September 2017. Pink Time Ltd will have a monthly turnover of £35,000. 
All of its sales will be to members of the public and will be zero rated for the purposes of value added tax (VAT).

Email from your manager – dated 8 June 2017
Please carry out the following work:

(c) Pink Time Ltd
Explain whether it will be compulsory for Pink Time Ltd to register for value added tax (VAT) and why the company would benefit from registering.

Required: Carry out the work requested in the email from your manager. 
The following marks are available:

(c) Pink Time Ltd.                  (5 marks)