Could someone please help me to decide on the rate I shall use? The client sells and hires canvas tents. Thank you!
Replies (3)
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Which is predominant?
If it is the hiring I would put it at 9.5% (Hiring or renting of goods)
If it is the selling I would say 7.5% (Retailing not listed elsewhere), assuming he is making the sales to the public.
Based on turnover
From http://www.hmrc.gov.uk/vat/start/schemes/flat-rate.htm
"There is a range of flat rate percentages that correspond to different business sectors. You must choose the sector that best describes your main business activity for the coming year. You must only use one percentage. So if you work in more than one business sector, you must use the one that represents the greater part of your turnover. You then apply that percentage to your total turnover."
Don't forget there is a 1% discount for the first year if the business hasn't registered for VAT yet.