Lance Ltd offers direct insurance sales and an insurance brokerage service. Its insurance sales are an exempt supply, wh

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Lance Ltd Offers Direct Insurance Sales And An Insurance Brokerage Service Its Insurance Sales Are An Exempt Supply Wh 1 (33.62 KiB) Viewed 14 times

Lance Ltd offers direct insurance sales and an insurance brokerage service. Its insurance sales are an exempt supply, while its insurance brokerage services are a standard-rated supply. In the quarter ended 31 March 2022 Lance Ltd's VAT records show: Input VAT relating to standard-rated supplies 26,456 Input VAT relating to exempt supplies 8,123 Non-attributable input VAT 14,255 Standard-rated supplies (exclusive of VAT) 126,479 Exempt supplies 343,416 In addition to the above, Lance Ltd sold some plant for £8,500 (exclusive of VAT). Lance Ltd also purchased a new car in March 2022 at a cost of £19,000 (exclusive of VAT). The new car is to be used by an employee of the insurance brokerage service for both business and private use. Lance Ltd does not pay for any private fuel. Requirements Calculate the net VAT payable to or repayable by HMRC for Lance Ltd's quarter ended 31 March 2022. Explain how any end of year adjustment is calculated. (10 marks)