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Question 1d iv
(d) Richard’s sales since the commencement of trading on 6 April 2012 have been as follows:
| April to July 2012 | £10,500 per month |
| August to November 2012 | £14,000 per month |
| December 2012 to March 2013 | £21,500 per month |
These figures are stated exclusive of value added tax (VAT). Richard’s sales are all standard rated.
As a trainee Chartered Certified Accountant you have advised Richard in writing that he should be registered for VAT, but he has refused to register because he thinks his net profit is insufficient to cover the additional cost which would be incurred.
Required:
(iv) Explain how and when VAT registered businesses have to submit their quarterly VAT returns and pay any related VAT liability.
Note: You are not expected to cover annual VAT returns, the election for monthly returns or substantial traders. (2 marks)