VAT FRS PR services?

VAT FRS PR services?

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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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By Polly-Esther Kakz
09th Aug 2016 13:46

It was never management consultancy or advertising.

http://www.taxation.co.uk/taxation/Articles/2016/03/01/334425/enough-enough

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Replying to Polly-Esther Kakz:
Hitch photo
By Kevin Kavanagh
09th Aug 2016 14:55

Love the new name Portia.

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By nick farrow
09th Aug 2016 14:45

Thanks Polly - that was the article that prompted our re-assessment of rates but HMRC of course thought otherwise according to their guidance here:

https://www.gov.uk/hmrc-internal-manuals/vat-flat-rate-scheme/frs7200

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By Polly-Esther Kakz
09th Aug 2016 14:58

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...

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By nick farrow
09th Aug 2016 15:03

I appreciate that but worth mentioning to our client that HMRC may take a different view but recent cases support our position

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By sally1964
16th Aug 2016 10:56

Surely its about time that HMRC had a duty to agree the %age within a set period.

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Replying to sally1964:
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By Hugh Jarssis
16th Aug 2016 11:10

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.

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By Hugh Jarssis
16th Aug 2016 11:06

This is a pointless and meaningless post 7 made only to make post 6 readable.

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