Flat rate VAT

Flat rate VAT

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Does the flat rate scheme of 8.5% apply to all invoices for a vehicle repairer if part of his services is servicing the vehicle and not solely repairing? Does the normal VAT accrual apply to services outside the FRS?

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By andy.partridge
02nd May 2013 17:50

Ouch!

You might want to edit your question as it's difficult to gauge if you are 'nearly there' or 'clueless'. For starters you do realise that standard VAT on his invoices will continue to be 20% if he is in FRS?

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By Accountsetc
02nd May 2013 22:39

Thanks Andy and Basil
Whilst my basic knowledge of FRS is fine and I know that the invoices will still carry VAT @ 20% what I wanted to know is that on the HMRC page it simply referred to vehicle repairer at 8.5% and if the repairer also serviced vehicles could the FRS be applied to these services as well. Or would he have do normal VAT accrual accounting on the inputs and outputs relating to servicing i.e. treat the two revenue streams separately. However I now know that its repairing and maintaining vehicles, which I take to include servicing.

However I accept the criticism that I should re-read my posts properly before posting.

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By TickTock
03rd May 2013 07:58

FRS
If you are on flat rate VAT scheme then that's what you use for all income streams. There is no mixing of different VAT schemes.

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By andy.partridge
03rd May 2013 09:46

Best fit

You look for the best fit of your client's business activity with the list supplied by HMRC and use that % rate for all supplies. If the nature of your client's business changes over time they might need to switch to a different activity. Whatever, you should keep a record of why a particular activity was chosen. Also, remember the FRS rate is based on the value of gross supplies, not the net. Oh and sorry if I sounded harsh earlier.

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Replying to Red Leader:
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By Accountsetc
03rd May 2013 14:42

don't worry

andy.partridge wrote:

 Oh and sorry if I sounded harsh earlier.

Andy don't worry, no offence taken - we're all big boys and girls here. Your comment and Basils was a timely reminder of the need to communicate properly whether using written or spoken word.

Rather look like an idiot on an anonymous forum than in front of a client............

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