In view of recent cases re FRS - is the supply of PR services:
advertising,
other business services or
still managment consultancy?
Replies (8)
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It was never management consultancy or advertising.
http://www.taxation.co.uk/taxation/Articles/2016/03/01/334425/enough-enough
What have HMRC and their guidance got to do with it? It is up to the trader to use the appropriate Flat Rate. HMRC can raise an assessment if they think that insufficient VAT has been accounted for, and the taxpayer can then appeal and kick their collective [***] at tribunal. PR is not management consultancy. End of. HMRC's manuals have no authority.
See also: http://www.taxation.co.uk/taxation/Articles/2016/07/26/335112/readers-fo...
No. The whole point of the recent case law is that it isn't. It isn't up to HMRC, and HMRC cannot impose a rate (automatically based on a SIC code entry) on any trader.
It is up to the trader to choose the "most appropriate" rate, and HMRC can only go back and seek to change things if the trader's choice was not a reasonable one.