Flat Rate VAT

Flat Rate VAT

Didn't find your answer?

We have 2 clients who are singing teachers, what flat rate VAT scheme would you put them in?  Entertainers (including dance instruction) - 12.5%?

Also, if one also has other income from a band in the same company, would this change the flat rate?

Replies (2)

Please login or register to join the discussion.

avatar
By occca
29th Nov 2013 19:37

Thank you :D

Excellent, thank you 

Thanks (0)
The triggle is a distant cousin of the squonk (pictured)
By Triggle
29th Nov 2013 19:49

Agree with Basil.

Here's the fuller trade sector list:

http://www.hmrc.gov.uk/manuals/frsmanual/FRS7300.htm

Education, which teaching singing is I suppose, is in the "Any other activity that is not listed elsewhere" category as Basil states.

Where you have two activities the percentage used is the flat rate percentage for the activity with the greater expected turnover in the first year of being in the flat rate, again as Basil correctly states.

On each anniversary of joining the FRS an historic turnover test for the past year should be made and, if necessary, the flat rate changed by informing HMRC.

See this case:

http://www.bailii.org/cgi-bin/markup.cgi?doc=/uk/cases/UKVAT/2006/V19671...

Please note that the 1% discount applies only for the first year of VAT registration and not for the first year of being in the FRS. If the client has been VAT registered for a year or more before joining the FRS there is no discount. If the client has been VAT registered for only, say, six months before joining the scheme the 1% discount is only due for the first 6 months.of being in the FRS.

 

 

Thanks (0)