A new client registered himself for the VAT FRS (before looking for an accountant), and was told on the phone by HMRC that he should use the 8% rate. Client can't remember which trade sector they advised him to use. I can't believe that 8% is correct, and, giving them the benefit of the doubt, I wonder if the HMRC thought he was actually retailing/wholesaling, rather than just getting sales for another organisation.
What would you use for a self employed sales person? Income is a day rate, and expenses are T&S. Would you go with 'business services that are not listed elsewhere' at 12%? Or something else?
Cheers,
ADF2410
Replies (4)
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FRS category
The various categories are set out at HMRC Internal Guidance FRS7300. I agree that, since he is not retailing or wholesaling, that those categories are not applicable.
I would go with 'Business services that are not listed elsewhere,' or 'Any other activity that is not listed elsewhere.' Both are 12%.
(And, keep a screen print of this forum post.)
Not selling
Yeah - he's not trading (in the sense of buying and selling), he's providing a service.
Unless he's recorded the HMRC advice (just kidding), go with the 12%.