Business accounting - Lampeter Builder's Merchants Essay

Business accounting - Lampeter Builder's Merchants - Essay Example Vehicle running expenses 44,000 Electricity 3,000 Insurance 15,000 Stationery 2,000 208,000 Net profit 540,000 (2) Profit and Loss Statement LAMPETERS BUILDERS MANAGEMENT BALANCE SHEET AS AT MARCH 31, 2011 Amount in ? Non-Current Assets Fixed Assets (Cost) 200,000 Accumulated Depreciation (100,000) Fixed Assets (WDV) 100,000 Current Assets Trade debtors 18,000 Bank (9,000) Closing Stock 478,000 Total Assets 587,000 Current Liabilities Trade creditors 43,000 Capital 28,000 Drawings (24,000) Profit for the year 540,000 Total Equity and Capital 587,000 (3) Value Added Taxation Research The prime resource for research was the website ‘HM Revenue and Customs’ Planning and ordering What are the prevailing VAT rates in UK What rates are applicable on the business that the company is currently engaged in What are the methods and procedure of filing the VAT returns How the VAT is calculated What are the deadlines for submission of the return Presentation VAT is applicable on diff erent rate depending on the type of Goods and services offered by the company. In addition, there are some goods and services that are exempted from VAT. The VAT rates are divided into three segments Standard Rate 20 per cent Reduced Rate 5 per cent Zero Rate 0 per cent [1] Since the Company, Lampeter Builders’ Merchants is involved in the construction and material business, the following rates are applicable on the company Type of work VAT rate Construction of a new house or flat zero Converting a building into a house or flat reduced rate Renovating or altering an empty house or flat reduced rate Supplying and installing certain mobility aids for elderly people reduced rate Supplying and installing certain energy saving materials and equipment reduced rate Supplying and installing certain...VAT is applicable on different rate depending on the type of Goods and services offered by the company. In addition, there are some goods and services that are exempted from VAT. The VAT rates are divided into three segments Standard Rate 20 per cent Reduced Rate 5 per cent Zero Rate 0 per cent [1] Since the Company, Lampeter Builders’ Merchants is involved in the construction and material business, the following rates are applicable on the company At the end of every three months, the company already registered for VAT needs, to file a quarterly VAT return. The return can be filed either electronically or through paper returns. The returns, after properly completing are then sent to the following address