Can anybody confirm the hsitory of the Flat Rate VAT percentage for "Business services that are not listed elsewhere" is as follows:
From 1 Jan 2010 - 10.5%
1 Dec 2008 to 31 Dec 2009 - 9.5%
Pre 1 Dec 2008 - 11.0%
If these figures are correct, does anybody know why the rate did not revert to 11% on 1 Jan 2010?
Thanks
Replies (2)
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To match the business sector
HMRC use the information collated from the VAT returns filed in each business sector to work out what the Flat Rate should be. Over time the margin between purchases/sales and mix of zero/standard rated items will change.
Or to quote their website when the January 2010 rates were published:
"Some amendments have also been necessary to ensure that the rates accurately reflect the VAT paid by businesses in each sector. "