(c) Note that in answering this part of the question, you are not expected to take account of any of the information provided in parts (a) and (b) above unless otherwise indicated.

The following information is available in respect of Greenzone Ltd’s value added tax (VAT) for the quarter ended 31 March 2013:

(1) Output VAT of £38,210 was charged in respect of sales. This figure includes output VAT of £400 on a
deposit received on 29 March 2013, which is in respect of a contract that is due to commence on 20 April 2013.

(2) In addition to the above, Greenzone Ltd also charged output VAT of £4,330 on sales to Are Ltd and Can Ltd (see part (b) above). These two companies and Greenzone Ltd are not currently registered as a group for VAT purposes.

(3) The managing director of Greenzone Ltd is provided with free fuel for private mileage driven in his company motor car. The relevant quarterly scale charge is £300. This figure is inclusive of VAT.

(4) On 31 March 2013, Greenzone Ltd wrote off an impairment loss in respect of a sales invoice that was issued on 15 September 2012. This invoice was due for payment on 31 October 2012. Output VAT of £640 was originally paid in respect of the sale.

(5) Input VAT of £12,770 was incurred in respect of expenses. This figure includes the following input VAT:

For the quarters ended 31 December 2010 and 30 September 2012, Greenzone Ltd was two months late in submitting its VAT returns and in paying the related VAT liabilities. All of the company’s other VAT returns have been submitted on time, and the related VAT liabilities have been paid on time.

Required:
(i) Calculate the amount of value added tax (VAT) payable by Greenzone Ltd for the quarter ended 31 March 2013;

Note: Your calculation should clearly refer to all of the items of input VAT listed in note (5), indicating by the use of zero (0) any items that do not require adjustment. (7 marks)