The directors of Rainy-day Ltd wish to change their invoicing process so that customers are only issued with an invoice where there is a legal requirement to do so. For the quarters ended 31 December 2019, 31 March 2020 and 30 September 2020 Rainy-day Ltd was late in submitting its VAT returns and in paying the related VAT liabilities. All of Rainy-day Ltd's other VAT returns have been submitted on time. required: Calculate the surcharge penalty that Rainy-day Ltd could be charged if it is late in submitting its VAT return and paying its VAT liability for the quarter ended 31 March 2021. Total VAT payable on 25 March 2021 was £ 44,529.33 Note: *According to the actual UK VAT rules in the tax year 2020-2021.*
The directors of Rainy-day Ltd wish to change their invoicing process so that customers are only issued with an invoice where there is a legal requirement to do so. For the quarters ended 31 December 2019, 31 March 2020 and 30 September 2020 Rainy-day Ltd was late in submitting its VAT returns and in paying the related VAT liabilities. All of Rainy-day Ltd's other VAT returns have been submitted on time. required: Calculate the surcharge penalty that Rainy-day Ltd could be charged if it is late in submitting its VAT return and paying its VAT liability for the quarter ended 31 March 2021. Total VAT payable on 25 March 2021 was £ 44,529.33 Note: *According to the actual UK VAT rules in the tax year 2020-2021.*
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The directors of Rainy-day Ltd wish to change their invoicing process so that customers are only issued with an invoice where there is a legal requirement to do so.
For the quarters ended 31 December 2019, 31 March 2020 and 30 September 2020 Rainy-day Ltd was late in submitting its VAT returns and in paying the related VAT liabilities. All of Rainy-day Ltd's other VAT returns have been submitted on time.
required: Calculate the surcharge penalty that Rainy-day Ltd could be charged if it is late in submitting its VAT return and paying its VAT liability for the quarter ended 31 March 2021.
Total VAT payable on 25 March 2021 was £ 44,529.33
Note: *According to the actual UK VAT rules in the tax year 2020-2021.*
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education