Accounting · Value Added Tax (VAT)
Alice is registered for VAT and calculates her VAT liability based on the flat rate scheme. The standard rate of VAT is 20%, and the relevant flat rate percentage for Alice’s business is 10%. For the year ended 31 March 2025, Alice’s sales (exclusive of VAT) were: Standard-rated sales: £50,000 Zero-rated sales: £20,000 Exempt sales: £5,000 What total amount of VAT is payable by Alice to HM Revenue and Customs (HMRC) for the year ended 31 March 2025?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1£6,000
- 2£7,500
- 3£8,000
- 4£8,500✓
Correct answer
£8,500
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