SECTION 4 Q & A ANSWERS TO MOCK EXAMQUESTIONS 1 (A) MARK KETT –...

2012, and finally to 30 June 2012.

(6) Scuba Ltd then submitted the four consecutive VAT returns during the

surcharge period running to 30 June 2012 on time, and so will have

reverted to a clean default surcharge record.

(7) The late submission of the VAT return for the quarter ended 30 September

2012 will therefore simply have resulted in a surcharge liability notice

specifying a surcharge period running to 30 September 2013.

Errors on VAT return

(1) If the net errors total less than £10,000 then they can be voluntarily

disclosed by simply entering them on the VAT return for the quarter ended

31 March 2013.

(2) If the net errors total more than £10,000 then they can be voluntarily

disclosed, but disclosure must be made separately to HM Revenue &

Customs.

(3) Default interest will be charged if the net errors total more than £10,000, but

will not usually be charged if they are less than £10,000.

(Note that the figure of 1% of turnover for the VAT period, up to a

maximum of £50,000, is substituted for £10,000 if higher.)

3

Paul Opus – CGT liability 2012-13

£

£

Ordinary shares in Symphony Ltd (W1)

Shares acquired on 25 April 2012

Disposal proceeds (47,200 x 5,000/10,000)

23,600

Cost

(20,000)

‒‒‒‒‒‒‒‒‒

3,600

Shares acquired on 23 August 2011

Cost (110,400 × 5,000/40,000)

(13,800)

‒‒‒‒‒‒‒‒‒