Indirect Tax Sample Assessment - FA2015

dgaukrodger

Hi all,

Just getting in some last minute revision for my Indirect Tax Exam which is tomorrow!

Whilst I was completing the sample assessment listed above I have come across an issue, which has thrown me?

Question 1.6 (c) asks you to calculate the total value of all purchases and all other inputs, for box 7 of the VAT return.

When I first did this I got £495,153 (455,328.54 + 39,824.73), however the answers show a figure of £503,320, which includes an additional £7,166.

I understand that this figure comes from the VAT on the vehicle purchased by the company - however upon again reading the text beneath the ledger listings "You are told that UK purchases included a company car for £35,834 plus VAT...)

Based on this it seems that if you then take the UK purchases figure of £455,328 and then add an additional £7,166, then this figure of £7,166 has been included twice?

Again, I am not sure if this is me just not understanding what is being asked, but I believe that this is very misleading and possibly incorrect.

Please can someone else give me their opinion on this?

Kind regards,
Daniel