Flat rate VAT queries

Have acquired a new client, trading 18 months. They do SEO work & are on Flat rate VAT.
Three queries:
1. They claim that they are in "advertising", & therefore applicable Flat rate is 11%. I'm unsure (& wonder whether "IT consultancy" at 14.5% is closer ?) Anyone dealt with similar ?
2. I know that is for the taxpayer to 'decide' the applicable rate, but what happens if HMRC knock on the door and disagree?
3. The client has failed to claim their 1% Year One 'discount' -- can this be done retrospectively, or is it gone for ever ?

Thanks in advance.


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