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

2014.  

(iv) 

Scuba 

Ltd 

must 

submit 

supporting 

tax 

computations 

and 

a 

copy 

of 

its 

accounts 

with 

its 

corporation 

tax 

return. 

These 

must 

be 

submitted 

online 

using inline eXtensible Business Reporting Language (iXBRL). 

(b)

Default surcharge

(1) The late submission of the VAT return for the quarter ended 30 June 2010

will have resulted in HM Revenue & Customs issuing a surcharge liability

notice specifying a surcharge period running to 30 June 2011.

(2) The late payment of VAT for the quarter ended 30 September 2010 will

have resulted in a surcharge of £644 (32,200 × 2%).

(3) The late payment of VAT for the quarter ended 31 March 2011 will have

resulted in a surcharge of £170 (3,400 × 5%), but this will not have been

collected as it was less than £400.

(4) Although the VAT return for the quarter ended 30 June 2011 was submitted

late, this will not have resulted in a surcharge as Scuba Ltd was due a

refund for this period.

(5) The continued late submission of VAT returns will have resulted in the

surcharge period being extended to 30 September 2011, then to 31 March