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


  • AK002
    AK002 Registered Posts: 2,492 Beyond epic contributor 🧙‍♂️
    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.
  • Haggis
    Haggis Registered Posts: 40 Regular contributor ⭐
    Thanks for your reply, I wanted to make sure I was correct before filling in the return, thanks again, much appreciated
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