TXF6 UK

Section B: Q26

Specimen exam

Q26 Section B

2 marks

The following information is available in respect of Glacier Ltd’s value added tax (VAT) for the quarter ended 31 March 2019:

(1) Invoices were issued for sales of £44,600 to VAT registered customers.

Of this figure, £35,200 was in respect of exempt sales and the balance in respect of standard rated sales.

The standard rated sales figure is exclusive of VAT.

(2) In addition to the above, on 1 March 2019 Glacier Ltd issued a VAT invoice for £8,000 plus VAT of £1,600 to a VAT registered customer in respect of a contract that will be completed on 15 April 2019.

The customer paid for the contract in two instalments of £4,800 on 31 March 2019 and 30 April 2019.

(3) The managing director of Glacier Ltd is provided with free fuel for private mileage driven in her company motor car.

During the quarter ended 31 March 2019, the total cost of fuel for business and private mileage was £720, of which £270 was for private mileage.

The relevant quarterly scale charge is £408. All of these figures are inclusive of VAT.

For the quarters ended 30 September 2017 and 30 June 2018, Glacier Ltd was one month late in submitting its VAT returns and in paying the related VAT liabilities.

All of the company’s other VAT returns have been submitted on time.

What is the amount of output VAT payable by Glacier Ltd in respect of its sales for the quarter ended 31 March 2019?