VAT FRS percentage for sales person?

VAT FRS percentage for sales person?

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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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chips_at_mattersey
By Les Howard
28th Aug 2015 17:56

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.)

Thanks (1)
RLI
By lionofludesch
28th Aug 2015 18:04

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%.

Thanks (1)
avatar
By adf2410
28th Aug 2015 18:12

Thanks both

I queried this with the client to see if he could remember which sector he'd been advised to use.  He couldn't, so he rang HMRC again, and they told him that they'd got him registered to the 12% any other activities sector.  So that's what we're going with, and I'm not the big bad wolf for telling him that 8% was completely wrong!!!

Thanks (0)
RLI
By lionofludesch
29th Aug 2015 08:58

Happy Days!

Everyone's a winner.

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