inputs, outputs & schemes. session objectives 1. correctly calculate relevant inputs and outputs...
DESCRIPTION
AAT Reference Material Available in the exam – but you must revise it prior to the exam so you know where to find the information you need! GlossaryTRANSCRIPT
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Inputs, Outputs & Schemes
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Session Objectives
1. Correctly calculate relevant inputs and outputs using these VAT classifications: standard supplies; exempt supplies; zero-rated supplies; imports; exports
2. Correctly identify the key features of the following VAT schemes•Annual Accounting•Cash Accounting•Flat Rate Scheme•Standard Accounting
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AAT Reference MaterialAvailable in the exam – but you must revise it prior to the exam so you know where to find the information you need!
Glossary
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Calculation of VAT
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What is the difference between Zero Rated and Exempt Transactions?
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Question 1Net £ VAT Rate
%VAT £ Gross £
20% 2500.00
1000.00 5%
125.30 0%
5% 879.80
1505.20 20%
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Question 1Net £ VAT Rate
%VAT £ Gross £
2083.34 20% 416.66 2500.00
1000.00 5% 50.00 1050.00
125.30 0% 0 125.30
837.91 5% 41.89 879.80
1505.20 20% 301.04 1806.24
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Reclaiming input tax
Generally straight forward but a few considerations to be aware of
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Reclaiming input tax
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Reclaiming input tax
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Reclaiming input tax
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Fuel Scale ChargesC. Di. Oxide Ltd provides a company car to Khan and pays for all his private fuel.
The CO2emission level of the car is 200 g/km.
The scale charge table shows (for a 3 month period):
200 g/km £350 (net) VAT £70.00
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Fuel Scale ChargesC. Di. Oxide Ltd provides a company car to Khan and pays for all his private fuel.
The CO2emission level of the car is 200 g/km.
The scale charge table shows (for a 3 month period):
200 g/km £350 (net) VAT £70.00
£350 will be added to the total outputs on the company’s VAT return and additional output tax of £70.00 will be payable by the company.
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Question 2
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Scenario Include this on your
current VAT return?Yes/No
Output/input VAT amount to be
included on VAT return
a) You provide a valued trader with a case of vodka as a Christmas gift (cost price £96)
b) You are a printing business and give each of your 120 customers a desk calendar each year (cost price £1.50)
c) You sold goods to a debtor costing £940 inc VAT, issuing them with an invoice on the 28th March. Your terms of payment are net 30 days. The date is now the 31stOctober and your VAT return is now due for completion.
Question 2 cont . . . .
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d) You purchase a car for the business costing £18,000 plus VAT. The car is given to one of your sales reps to use.
e) You purchase a delivery van for £22,000 plus VAT to be used within the business.
f) You wine and dine a potential new customer. The restaurant bill totals £56.40 inc VAT
Scenario Include this on your
current VAT return?Yes/No
Output/input VAT amount to be
included on VAT return
Question 2 cont . . . .
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g) You sold goods to a debtor costing £1410 inc VAT, issuing them with an invoice on the 30thApril. Your terms of payment are net 60 days. The date is now the 30th November and it is the end of your VAT quarter.
h) Your employees keep records of their personal and business mileage for their cars and only reclaim their business mileage expense element. During the VAT quarter, employees have claimed car expenses totalling £1292.50 inc VAT.
Scenario Include this on your
current VAT return?Yes/No
Output/input VAT amount to be
included on VAT return
Question 2 cont . . . .
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Complete Questions 3-4
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Trading Overseas
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Trading Overseas
Within the EU
Outside the EU
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VAT must be paid prior to release
into UK by HMRC
Imports & Exports
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Which countries are in the EU?
How many?
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Which countries are in the EU?
How many?
27
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EU Overseas transactionsImports & Exports
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Find the information in the
reference material!
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Question 5
To registered traders
To non-registered
traders
Zero-rated Zero-rated Standard-rated Zero-rated Zero-rated Standard-rated Standard-rated Standard-rated
Use your reference material
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Question 5
To registered traders
To non-registered
traders
Zero-rated Zero-rated Standard-rated Zero-rated Zero-rated Standard-rated Standard-rated Standard-rated
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Question 6 - Coleman’s Toys
No VAT is charged by the EU supplier so can be ignored by the buyer on their VAT return.
Coleman’s must pay output VAT to HMRC at the port/airport and can reclaim the input VAT on their next VAT return.
Coleman’s must charge themselves output VAT and reclaim input Vat on the same return
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No VAT is charged by the EU supplier so can be ignored by the buyer on their VAT return.
Coleman’s must pay output VAT to HMRC at the port/airport and can reclaim the input VAT on their next VAT return.
Coleman’s must charge themselves output VAT and reclaim input Vat on the same return
Question 6 - Coleman’s Toys
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Keeping recordsList source documents/records for VAT output and input tax
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VAT Account
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What would be included in the VAT account?
VAT Account
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What would be included in the VAT account?
VAT AccountVAT on purchases (PDB)VAT on cash purchases (CB/PCB)
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What would be included in the VAT account?
VAT AccountVAT on purchases (PDB) VAT on sales (SDB)VAT on cash purchases (CB/PCB)
VAT on cash sales (CB)
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What would be included in the VAT account?
VAT AccountVAT on purchases (PDB) VAT on sales (SDB)VAT on cash purchases (CB/PCB)
VAT on cash sales (CB)
(VAT on purchase returns (PRDB)
(VAT on sales returns (SRDB)
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What would be included in the VAT account?
VAT AccountVAT on purchases (PDB) VAT on sales (SDB)VAT on cash purchases (CB/PCB)
VAT on cash sales (CB)
VAT on bad debts (Journal) VAT on EU acquisitions VAT due on EU acquisitions(VAT on purchase returns (PRDB)
(VAT on sales returns (SRDB)
(Adjustment – Net over-claim of input tax from previous returns)
Adjustment – Net understatement of output tax on previous returns
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Keeping records
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VAT invoices
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Tax collector for the government
VAT on Sales – Output Tax
VAT on Purchases – Input Tax
Difference is paid to OR received from
HMRC
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Form VAT 100
Difference between output tax and input tax
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A trader buys goods for £1,762.00 including VAT at 20.0% and sells them for £2,000.00 plus VAT. How much VAT is paid to HM Revenue & Customs?
Question 7 – The tax collector
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A trader buys goods for £1,762.00 including VAT at 20.0% and sells them for £2,000.00 plus VAT. How much VAT is paid to HM Revenue & Customs?
Net VAT GrossPurchasesSales
Question 7 – The tax collector
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A trader buys goods for £1,762.00 including VAT at 20.0% and sells them for £2,000.00 plus VAT. How much VAT is paid to HM Revenue & Customs?
Net VAT GrossPurchases 1762.00
Sales
Question 7 – The tax collector
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A trader buys goods for £1,762.00 including VAT at 20.0% and sells them for £2,000.00 plus VAT. How much VAT is paid to HM Revenue & Customs?
Net VAT GrossPurchases 1762.00
Sales
£1762 ÷ 120 x 20 = £293.66
Question 7 – The tax collector
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A trader buys goods for £1,762.00 including VAT at 20.0% and sells them for £2,000.00 plus VAT. How much VAT is paid to HM Revenue & Customs?
Net VAT GrossPurchases 293.66 1762.00
Sales
Question 7 – The tax collector
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A trader buys goods for £1,762.00 including VAT at 20.0% and sells them for £2,000.00 plus VAT. How much VAT is paid to HM Revenue & Customs?
Net VAT GrossPurchases 293.66 1762.00
Sales
£1762 - £293.66= £1468.34
Question 7 – The tax collector
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A trader buys goods for £1,762.00 including VAT at 20.0% and sells them for £2,000.00 plus VAT. How much VAT is paid to HM Revenue & Customs?
Net VAT GrossPurchases 1468.34 293.66 1762.00
Sales
Question 7 – The tax collector
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A trader buys goods for £1,762.00 including VAT at 20.0% and sells them for £2,000.00 plus VAT. How much VAT is paid to HM Revenue & Customs?
Net VAT GrossPurchases 1468.34 293.66 1762.00
Sales
Question 7 – The tax collector
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A trader buys goods for £1,762.00 including VAT at 20.0% and sells them for £2,000.00 plus VAT. How much VAT is paid to HM Revenue & Customs?
Net VAT GrossPurchases 1468.34 293.66 1762.00
Sales 2000.00
Question 7 – The tax collector
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A trader buys goods for £1,762.00 including VAT at 20.0% and sells them for £2,000.00 plus VAT. How much VAT is paid to HM Revenue & Customs?
Net VAT GrossPurchases 1468.34 293.66 1762.00
Sales 2000.00
Question 7 – The tax collector
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A trader buys goods for £1,762.00 including VAT at 20.0% and sells them for £2,000.00 plus VAT. How much VAT is paid to HM Revenue & Customs?
Net VAT GrossPurchases 1468.34 293.66 1762.00
Sales 2000.00 400.00
Question 7 – The tax collector
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A trader buys goods for £1,762.00 including VAT at 20.0% and sells them for £2,000.00 plus VAT. How much VAT is paid to HM Revenue & Customs?
Net VAT GrossPurchases 1468.34 293.66 1762.00
Sales 2000.00 400.00
Question 7 – The tax collector
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A trader buys goods for £1,762.00 including VAT at 20.0% and sells them for £2,000.00 plus VAT. How much VAT is paid to HM Revenue & Customs?
Net VAT GrossPurchases 1468.34 293.66 1762.00
Sales 2000.00 400.00 2400.00
Question 7 – The tax collector
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A trader buys goods for £1,762.00 including VAT at 20.0% and sells them for £2,000.00 plus VAT. How much VAT is paid to HM Revenue & Customs?
Net VAT GrossPurchases 1468.34 293.66 1762.00
Sales 2000.00 400.00 2400.00
Question 7 – The tax collector
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A trader buys goods for £1,762.00 including VAT at 20.0% and sells them for £2,000.00 plus VAT. How much VAT is paid to HM Revenue & Customs?
Net VAT GrossPurchases 1468.34 293.66 1762.00
Sales 2000.00 400.00 2400.00
Output (Sales) Tax – Input (Purchases) Tax = Balance to HMRC
Question 7 – The tax collector
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A trader buys goods for £1,762.00 including VAT at 20.0% and sells them for £2,000.00 plus VAT. How much VAT is paid to HM Revenue & Customs?
Net VAT GrossPurchases 1468.34 293.66 1762.00
Sales 2000.00 400.00 2400.00
Output (Sales) Tax – Input (Purchases) Tax = Balance to HMRC
400.00 – 293.66 = £106.34 payable
Question 7 – The tax collector
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Complete question7b – 7c
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Transaction VAT amount
£
Input tax /
output tax
A trader purchases goods for £102.00 plus VAT
The trader then sells these goods for £195.84 including VAT
b) For each transaction calculate the VAT amount and indicate whether this would be input tax or output tax.
Complete the following (* delete the incorrect phrase):The amount due to* / reclaimable* from HMRC is £…………..
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Transaction VAT amount
£
Input tax /
output tax
A trader purchases goods for £102.00 plus VAT
20.40
The trader then sells these goods for £195.84 including VAT
b) For each transaction calculate the VAT amount and indicate whether this would be input tax or output tax.
Complete the following (* delete the incorrect phrase):The amount due to* / reclaimable* from HMRC is £…………..
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Transaction VAT amount
£
Input tax /
output tax
A trader purchases goods for £102.00 plus VAT
20.40
The trader then sells these goods for £195.84 including VAT
b) For each transaction calculate the VAT amount and indicate whether this would be input tax or output tax.
Complete the following (* delete the incorrect phrase):The amount due to* / reclaimable* from HMRC is £…………..
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Transaction VAT amount
£
Input tax /
output tax
A trader purchases goods for £102.00 plus VAT
20.40 InputTax
The trader then sells these goods for £195.84 including VAT
b) For each transaction calculate the VAT amount and indicate whether this would be input tax or output tax.
Complete the following (* delete the incorrect phrase):The amount due to* / reclaimable* from HMRC is £…………..
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Transaction VAT amount
£
Input tax /
output tax
A trader purchases goods for £102.00 plus VAT
20.40 InputTax
The trader then sells these goods for £195.84 including VAT
b) For each transaction calculate the VAT amount and indicate whether this would be input tax or output tax.
Complete the following (* delete the incorrect phrase):The amount due to* / reclaimable* from HMRC is £…………..
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Transaction VAT amount
£
Input tax /
output tax
A trader purchases goods for £102.00 plus VAT
20.40 InputTax
The trader then sells these goods for £195.84 including VAT
32.64
b) For each transaction calculate the VAT amount and indicate whether this would be input tax or output tax.
Complete the following (* delete the incorrect phrase):The amount due to* / reclaimable* from HMRC is £…………..
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Transaction VAT amount
£
Input tax /
output tax
A trader purchases goods for £102.00 plus VAT
20.40 InputTax
The trader then sells these goods for £195.84 including VAT
32.64
b) For each transaction calculate the VAT amount and indicate whether this would be input tax or output tax.
Complete the following (* delete the incorrect phrase):The amount due to* / reclaimable* from HMRC is £…………..
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Transaction VAT amount
£
Input tax /
output tax
A trader purchases goods for £102.00 plus VAT
20.40 InputTax
The trader then sells these goods for £195.84 including VAT
32.64 OutputTax
b) For each transaction calculate the VAT amount and indicate whether this would be input tax or output tax.
Complete the following (* delete the incorrect phrase):The amount due to* / reclaimable* from HMRC is £…………..
![Page 67: Inputs, Outputs & Schemes. Session Objectives 1. Correctly calculate relevant inputs and outputs using these VAT classifications: standard supplies; exempt](https://reader034.vdocuments.site/reader034/viewer/2022052515/5a4d1b617f8b9ab0599adbc4/html5/thumbnails/67.jpg)
Transaction VAT amount
£
Input tax /
output tax
A trader purchases goods for £102.00 plus VAT
20.40 InputTax
The trader then sells these goods for £195.84 including VAT
32.64 OutputTax
b) For each transaction calculate the VAT amount and indicate whether this would be input tax or output tax.
Complete the following (* delete the incorrect phrase):The amount due to* / reclaimable* from HMRC is £…………..
![Page 68: Inputs, Outputs & Schemes. Session Objectives 1. Correctly calculate relevant inputs and outputs using these VAT classifications: standard supplies; exempt](https://reader034.vdocuments.site/reader034/viewer/2022052515/5a4d1b617f8b9ab0599adbc4/html5/thumbnails/68.jpg)
Transaction VAT amount
£
Input tax /
output tax
A trader purchases goods for £102.00 plus VAT
20.40 InputTax
The trader then sells these goods for £195.84 including VAT
32.64 OutputTax
b) For each transaction calculate the VAT amount and indicate whether this would be input tax or output tax.
Complete the following (* delete the incorrect phrase):The amount due to* / reclaimable* from HMRC is £…………..
Output tax 32.64Input Tax 20.40Tax due to HMRC 12.24
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Transaction VAT amount
£
Input tax /
output tax
A trader purchases goods for £102.00 plus VAT
20.40 InputTax
The trader then sells these goods for £195.84 including VAT
32.64 OutputTax
b) For each transaction calculate the VAT amount and indicate whether this would be input tax or output tax.
Complete the following (* delete the incorrect phrase):The amount due to* / reclaimable* from HMRC is £12.24
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Transaction VAT amount
£
Input tax / output tax
A trader purchases goods for £500.00 plus VAT
100.00 Input
The trader then sells these goods for £510.00 including VAT
85.00 Output
The amount due to* / reclaimable* from HMRC is £15.00
Q7c - Answer
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Question 8Revision of documentation
Reference Material!
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Must be included on a full VAT invoice
Customer order number Invoice dateDescription of the goods or services suppliedCustomers VAT numberSellers VAT numberCustomers name & addressSuppliers name & addressSellers required payment methodRate of settlement discount (if offered)VAT rates appliedAmount excluding VATAmount of VAT charged
Question 8
Answer next slide
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Must be included on a full VAT invoice
Customer order number Invoice date Description of the goods or services supplied
Customers VAT number Sellers VAT number Customers name & address Suppliers name & address Sellers required payment method Rate of settlement discount (if offered) VAT rates applied Amount excluding VAT Amount of VAT charged
Question 8
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Question 9 The invoice should only show the total VAT charges
The invoice should show the standard rate VAT and the reduced rate VAT as separate amounts on the invoiceThe invoice should show the standard rate VAT separately and include the reduced rate VAT in the Gross amount due
The invoice should show the reduced rate VAT separately and include the standard rate VAT in the Gross amount due
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Task 7 The invoice should only show the total VAT charges
The invoice should show the standard rate VAT and the reduced rate VAT as separate amounts on the invoice
The invoice should show the standard rate VAT separately and include the reduced rate VAT in the Gross amount due
The invoice should show the reduced rate VAT separately and include the standard rate VAT in the Gross amount due
Question 9
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Complete Question 10 & 11
Answer next slide
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Question 10 Answer is £250
Question 11 Answer is the third choice
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VAT SchemesStandard Accounting – The default scheme when registering for VAT
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Standard AccountingAnnual accountingCash AccountingFlat Rate Scheme
Who can use it?What/when do they pay?When do they send a VAT return?
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Standard AccountingWho can use it?What/when do they pay?When do they send a VAT return?Advantages/Disadvantages
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Annual accounting
LEVEL 3 DIPLOMA IN ACCOUNTING INDIRECT TAX
FINANCE ACT 2013
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Cash accounting
LEVEL 3 DIPLOMA IN ACCOUNTING INDIRECT TAX
FINANCE ACT 2013
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Flat rate scheme
LEVEL 3 DIPLOMA IN ACCOUNTING INDIRECT TAX
FINANCE ACT 2013
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Question 13
Remember to use your AAT
reference material!
Discuss the scenario you have been given and recommend an appropriate VAT scheme
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Fox Ltd manufactures and sells underwear to other businesses. All goods are standard rated and all sales and purchases are made on credit
Standard
Annual
Cash Flat-rate
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Standard
Annual
Cash Flat-rate
Mag Azine runs a retail shop selling goods to the public. All sales are for cash and all purchases are made on credit. Mag Azine’s supplies are 98% standard rated.
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Standard
Annual
Cash Flat-rate
Play Zoo manufactures children clothing. All sales are zero rated and items are sold to retailers. Sales and purchases are made on credit.
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Standard
Annual
Cash Flat-rate
Chelsea Bun runs a small bakery and has a patisserie from which she sells her goods. Her sales are a mixture of mainly zero rated (breads) and some standard rated (hot food to take away) supplies. Patisserie sales are for cash, but she does makes sales of celebratory cakes on a credit basis. Purchases are made on credit.
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Standard
Annual
Cash Flat-rate
Ali Baba, a barber, finds keeping detailed records difficult. All his sales are for cash and his purchases are made by cash.
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Question 14Flat rate or standard rate? Ali Baba has in the last year had annual net sales of £102,000, all of which are standard rated. His standard rated net expenses for the corresponding period were £18,000. a)What would be his liability using the Standard
Accounting method?b)What would be his liability if he could use a Flat Rate
of 10%?
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Question 14Ali Baba has in the last year had annual net sales of £102,000, all of which are standard rated. His standard rated net expenses for the corresponding period were £18,000. a)What would be his liability using the Standard
Accounting method?
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Ali Baba has in the last year had annual net sales of £102,000, all of which are standard rated. His standard rated net expenses for the corresponding period were £18,000. a)What would be his liability using the Standard
Accounting method?Net
AmountVAT
(20%)Gross
Sales 102,000
Question 14
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Ali Baba has in the last year had annual net sales of £102,000, all of which are standard rated. His standard rated net expenses for the corresponding period were £18,000. a)What would be his liability using the Standard
Accounting method?Net
AmountVAT
(20%)Gross
Sales 102,000
102,000 x 20%
Question 14
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Ali Baba has in the last year had annual net sales of £102,000, all of which are standard rated. His standard rated net expenses for the corresponding period were £18,000. a)What would be his liability using the Standard
Accounting method?Net
AmountVAT
(20%)Gross
Sales 102,000 20,400
102,000 x 20%
Question 14
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Ali Baba has in the last year had annual net sales of £102,000, all of which are standard rated. His standard rated net expenses for the corresponding period were £18,000. a)What would be his liability using the Standard
Accounting method?Net
AmountVAT
(20%)Gross
Sales 102,000 20,400
Question 14
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Ali Baba has in the last year had annual net sales of £102,000, all of which are standard rated. His standard rated net expenses for the corresponding period were £18,000. a)What would be his liability using the Standard
Accounting method?Net
AmountVAT
(20%)Gross
Sales 102,000 20,400 122,400
Question 14
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Ali Baba has in the last year had annual net sales of £102,000, all of which are standard rated. His standard rated net expenses for the corresponding period were £18,000. a)What would be his liability using the Standard
Accounting method?Net
AmountVAT
(20%)Gross
Sales 102,000 20,400 122,400
Question 14
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Ali Baba has in the last year had annual net sales of £102,000, all of which are standard rated. His standard rated net expenses for the corresponding period were £18,000. a)What would be his liability using the Standard
Accounting method?Net
AmountVAT
(20%)Gross
Sales 102,000 20,400 122,400
Purchases 18,000
Question 14
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Ali Baba has in the last year had annual net sales of £102,000, all of which are standard rated. His standard rated net expenses for the corresponding period were £18,000. a)What would be his liability using the Standard
Accounting method?Net
AmountVAT
(20%)Gross
Sales 102,000 20,400 122,400
Purchases 18,000
18,000 x 20%
Question 14
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Ali Baba has in the last year had annual net sales of £102,000, all of which are standard rated. His standard rated net expenses for the corresponding period were £18,000. a)What would be his liability using the Standard
Accounting method?Net
AmountVAT
(20%)Gross
Sales 102,000 20,400 122,400
Purchases 18,000 3600
18,000 x 20%
Question 14
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Ali Baba has in the last year had annual net sales of £102,000, all of which are standard rated. His standard rated net expenses for the corresponding period were £18,000. a)What would be his liability using the Standard
Accounting method?Net
AmountVAT
(20%)Gross
Sales 102,000 20,400 122,400
Purchases 18,000 3600
Question 14
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Ali Baba has in the last year had annual net sales of £102,000, all of which are standard rated. His standard rated net expenses for the corresponding period were £18,000. a)What would be his liability using the Standard
Accounting method?Net
AmountVAT
(20%)Gross
Sales 102,000 20,400 122,400
Purchases 18,000 3,600 21,600
Question 14
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Ali Baba has in the last year had annual net sales of £102,000, all of which are standard rated. His standard rated net expenses for the corresponding period were £18,000. a)What would be his liability using the Standard
Accounting method?Net
AmountVAT
(20%)Gross
Sales 102,000 20,400 122,400
Purchases 18,000 3,600 21,600
Question 14
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Ali Baba has in the last year had annual net sales of £102,000, all of which are standard rated. His standard rated net expenses for the corresponding period were £18,000. a)What would be his liability using the Standard
Accounting method?Net
AmountVAT
(20%)Gross
Sales 102,000 20,400 122,400
Purchases 18,000 3,600 21,600
20,400 – 3,600 = 16,800
Question 14
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Ali Baba has in the last year had annual net sales of £102,000, all of which are standard rated. His standard rated net expenses for the corresponding period were £18,000. What would be his liability if he could use a Flat Rate of 10%?
Sales Revenue (INCLUDING VAT)£122,400 x 10% = £12,240
Question 14
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Description Input VAT Reclaim input VAT?
Car – for personal use by employee £2,010.00 Yes / NoCustomer entertainment £24.90 Yes / NoStaff party £67.86 Yes / NoStationery supplies for the accounts office
£172.34 Yes / No
Raw materials for the manufacturing process
£49,000 Yes / No
New computer - an 18th birthday present for the managing director’s daughter
£108.50 Yes / No
Repairs to taxable traders garage roof at his home
£490.00 Yes / No
New kitchen equipment for the staff canteen
£6,230.00 Yes / No
Question 15
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Item Input tax
recovered
Sale proceeds (excl VAT)
£
Output tax £
Computers Yes £1,900.00
Car No £8,280.00
Van Yes £15,000.00
Motorcycle Yes £4,300.00
Question 16
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Question 17
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Drawings
Goods Cash
Output tax due
Outside the scope
of VAT
![Page 110: Inputs, Outputs & Schemes. Session Objectives 1. Correctly calculate relevant inputs and outputs using these VAT classifications: standard supplies; exempt](https://reader034.vdocuments.site/reader034/viewer/2022052515/5a4d1b617f8b9ab0599adbc4/html5/thumbnails/110.jpg)
Question 18 - Drawings
Description
Original cost
£
Replacement cost
£
Output VAT£
Goods for own use
300 340
Cash drawings
1200 1200
Output tax is calculated on
the replacement
cost
![Page 111: Inputs, Outputs & Schemes. Session Objectives 1. Correctly calculate relevant inputs and outputs using these VAT classifications: standard supplies; exempt](https://reader034.vdocuments.site/reader034/viewer/2022052515/5a4d1b617f8b9ab0599adbc4/html5/thumbnails/111.jpg)
Description
Original cost
£
Replacement cost
£
Output VAT£
Goods for own use
300 340 68.00(340 x 20%)
Cash drawings
1200 1200
Question 18 - Drawings
![Page 112: Inputs, Outputs & Schemes. Session Objectives 1. Correctly calculate relevant inputs and outputs using these VAT classifications: standard supplies; exempt](https://reader034.vdocuments.site/reader034/viewer/2022052515/5a4d1b617f8b9ab0599adbc4/html5/thumbnails/112.jpg)
Description
Original cost
£
Replacement cost
£
Output VAT£
Goods for own use
300 340 68.00
Cash drawings
1200 1200 0
Outside the scope of VAT
Question 18 - Drawings
![Page 113: Inputs, Outputs & Schemes. Session Objectives 1. Correctly calculate relevant inputs and outputs using these VAT classifications: standard supplies; exempt](https://reader034.vdocuments.site/reader034/viewer/2022052515/5a4d1b617f8b9ab0599adbc4/html5/thumbnails/113.jpg)
Description
Original cost
£
Replacement cost
£
Output VAT£
Goods for own use
300 340 68.00
Cash drawings
1200 1200 0
Question 18 - Drawings
![Page 114: Inputs, Outputs & Schemes. Session Objectives 1. Correctly calculate relevant inputs and outputs using these VAT classifications: standard supplies; exempt](https://reader034.vdocuments.site/reader034/viewer/2022052515/5a4d1b617f8b9ab0599adbc4/html5/thumbnails/114.jpg)
Now try Question 19
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Question 20Hand-out
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Question 21Tax point revision
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HomeworkComplete remaining questions in the hand-out.
Revision for progress test next week