Flat rate scheme percentage
Haggis
Registered Posts: 40 Regular contributor ⭐
I wonder if someone can help me out with a % rate query with the FRS % to be applied for the VAT calculation.
One of my clients is registered on the flat rate VAT scheme. His previous accountant applied the % for general building or construction service being 8.5% in 2005. However I believe there is a higher percentage for labour only building or construction where the value of materials supplied is less than 10% of the turnover (13.5%).
His materials value has decreased over the years and is now below the 10% although his overall cost of sales has stayed above 10% of his turnover. Do you think I should apply the labour only higher % or I should carry on with the lower % for general building ? (He is a kitchen fitter)
many thanks
One of my clients is registered on the flat rate VAT scheme. His previous accountant applied the % for general building or construction service being 8.5% in 2005. However I believe there is a higher percentage for labour only building or construction where the value of materials supplied is less than 10% of the turnover (13.5%).
His materials value has decreased over the years and is now below the 10% although his overall cost of sales has stayed above 10% of his turnover. Do you think I should apply the labour only higher % or I should carry on with the lower % for general building ? (He is a kitchen fitter)
many thanks
0
Comments
-
If the materials supplied have fallen below the 10% then I'd apply the new rate.
You'll need to inform HMRC you're changing rates also.0 -
Thanks for your reply, I wanted to make sure I was correct before filling in the return, thanks again, much appreciated0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 319 NEW! Qualifications 2022
- 157 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 92 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 272 VAT
- 92 Software
- 274 Tax
- 136 Bookkeeping
- 7.2K General accounting discussion
- 201 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership