Question 5 Romanoff Ltd was incorporated on 1 April 2021 and commenced trading on 1 January 2022. The company voluntaril

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Question 5
Romanoff Ltd was incorporated on 1 April 2021 and commenced
trading on 1 January 2022. The company voluntarily registered for
VAT on 1 January 2022, preparing its first VAT return for the
quarter ended 31 March 2022. Romanoff Lid's sales for the first 3
months of trading are shown below and are stated exclusive of
VAT
Standard rated Zero rated
January 2022 £24,800
£30,100
February 2022 £42,600
£28,700
March 2022
£58,300

£22,700
TOTAL
£125,700
£81.500
PART A
Assuming Romanoff Ltd did not voluntarily register for
VAT, from what date would the business have been required to
compulsorily notify and register for VAT? Provide workings
alongside your answer.
During the quarter ended 31 March 2022, Romanoff Ltd received
standard rated invoices totaling £56,400 (inclusive of VAT) in
respect of purchases and expenses. Prior to trading, the company
purchased office equipment totalling £4,900 (exclusive of VAT) on 7
April 2021.
Required:
PART B
Taking into account all of the information above, calculate the
amount of net output VAT that should be paid to HMRC in respect of
the quarter ended 31 March 2022.
On 28 December 2021 Romanoff Ltd sold 5,000 £1 ordinary shares
in Barton plc for £24,500. Romanoff Ltd had originally purchased
8,000 shares in Barton plc on 8 September 2021 for £4,800. On 21
September 2021 Barton plc made a 1 for 4 bonus issue. The
indexation factor from September 2021 to December 2021 is
0.008.
Required:
PART C
Calculate Romanoff Ltd.'s capital gain on the disposal of Barton
plc shares. Clearly show the cost of the remaining shares in Barton
plc.