Zim has been registered for value added tax (VAT) since 1 April 2005. The following information is available for the year ended 31 March 2015:

(1) Sales invoices totalling £126,000 were issued, of which £115,200 were in respect of standard rated sales and £10,800 were in respect of zero rated sales. Zim’s customers are all members of the general public.

(2) On 31 March 2015, Zim wrote off two impairment losses which were in respect of standard rated sales. The first impairment loss was for £780, and was in respect of a sales invoice which had been due for payment on 15 August 2014. The second impairment loss was for £660, and was in respect of a sales invoice which had been due for payment on 15 September 2014.

(3) Purchase invoices totalling £49,200 were received, of which £43,200 were in respect of standard rated purchases and £6,000 were in respect of zero rated purchases.

(4) Rent of £1,200 is paid each month. During the year ended 31 March 2015, Zim made 13 rental payments because the invoice dated 1 April 2015 was paid early on 31 March 2015. This invoice was in respect of the rent for April 2015.

(5) During the year ended 31 March 2015, Zim spent £2,600 on mobile telephone calls, of which 40% related to private calls.

(6) During the year ended 31 March 2015, Zim spent £1,560 on entertaining customers, of which £240 was in respect of overseas customers.

All of the above figures are inclusive of VAT where applicable. The expenses referred to in notes (4), (5) and (6) are all standard rated.

Zim does not use either the cash accounting scheme or the flat rate scheme. He has forecast that for the year ended 31 March 2016, his total sales will be the same as for the year ended 31 March 2015.

Required:
(c) Explain whether or not it would have been beneficial for Zim to have used the VAT flat rate scheme for the year ended 31 March 2015.

Notes:
1. You should assume that the relevant flat rate scheme percentage for Zim’s trade would have been 12% throughout the whole of the year ended 31 March 2015.

2. Your answer for this part of the question should be supported by appropriate calculations. (2 marks)