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A flat rate question and a sole trader question

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Hi, Sorry two questions.

How can you tell what flat rate scheme a client is on?

This new client said he was on 16% so I did his vat return, now he thinks it was meant to be 16.5% so he checked online and now he thinks its meant to be 14! His main accountant should know but I wasnt sure if I can find out not being his agent?

 

Ok the next one, a sole trader lets call him Mr Smith, is trading as Old Garage but now hes moved to another unit and under VOSA regs needs to be trading as New Garage

So we set him up as Mr Smith t/a Old Garage, but should it have been Old Garage t/a New Garage?!

We set him up as VAT registered but have not had the registration through yet so I dont know how to change anything even if I need to :( kinda did it on the reasoning if he moves he will go back to being Smith t/a Old but now I am worried VOSA wont see it as him trading as New even though the invoicing etc all shows new.

Replies (16)

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By memyself-eye
24th Jul 2019 09:14

What does your new client do? - that will dictate the flat rate %Your Mr Smith is personally VAT registered - it hardly matters what his t/as name is and is VOSA an issue you should be involved in?

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By Duggimon
24th Jul 2019 09:18

Flat Rate percentages are not handed out by HMRC as part of the VAT registration, taxpayers determine them themselves from the list on the VAT notice. Just have a read yourself, pick the most reasonable one and go for it.

To start you off, I can confirm it's definitely not 16%.

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RLI
By lionofludesch
24th Jul 2019 09:25

Well, I think we've got the four corners of the picture.

We just need to find all the other jigsaw pieces.

VOSA ? Does he do MOTs then ? They won't count.

Is he a limited cost trader ?

Why does he think 14% is right ?

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By JoF
24th Jul 2019 09:42

Moved to another unit and VOSA are demaning he set up another business. Really? I dont think these are the full facts.

''So we set him up as Mr Smith t/a Old Garage, but should it have been Old Garage t/a New Garage?!'' - Set up with whom? HMRC.

A clearer explanation would help.

Also - if you are doing the VAT returns, why are you not the agent?

Ditto on the other stuff so far. Start with the VAT guidance. Then tell us what you think.

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By ireallyshouldknowthisbut
24th Jul 2019 12:25

Does he have an accountant?

I suggest you speak to them first up.

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By Clare_K
24th Jul 2019 13:10

Sorry two different Clients.
1- Flat rate I have advised him to ask the main accountant to confirm as he was sure it was 16.5 well at least that's what the last few have been.

2- He was a sole trader working from a unit not doing MOTs, now he has moved to a new unit and trying to move the MOT Station name to his rather than the guy who used to do them who is retiring but they still want to keep testing in the area.
So its just bad timing that in the same month all the paperwork is going through we have had to register him for VAT starting 1st April, the fact MOTs are not vatable isn't the issue, its the trading names they will have issues with as if its not clearly him they complain.
Yes I am his accountant but only started last week so haven't got codes for 64-8 yet.

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Replying to Clare_K:
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By MissAccounting
24th Jul 2019 14:21

Clare_K wrote:

Yes I am his accountant but only started last week so haven't got codes for 64-8 yet.

Only started as an accountant last week?

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Replying to MissAccounting:
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By Clare_K
24th Jul 2019 15:06

MissAccounting wrote:

Clare_K wrote:
Yes I am his accountant but only started last week so haven't got codes for 64-8 yet.

Only started as an accountant last week?

Would there be an issue?

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Replying to MissAccounting:
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By Clare_K
24th Jul 2019 15:06

MissAccounting wrote:

Clare_K wrote:
Yes I am his accountant but only started last week so haven't got codes for 64-8 yet.

Only started as an accountant last week?

Would there be an issue?

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Replying to Clare_K:
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By lionofludesch
24th Jul 2019 14:23

Clare_K wrote:

Sorry two different Clients.

Did you not consider that two different threads might be helpful ?

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Replying to Clare_K:
RLI
By lionofludesch
24th Jul 2019 14:25

Clare_K wrote:

Sorry two different Clients.
1- Flat rate I have advised him to ask the main accountant to confirm as he was sure it was 16.5 well at least that's what the last few have been.

It'll be an exceptional client who benefits from the FRS at 16½%.

He's either doing it because he genuinely has very little input tax or he's too lazy to keep records of his input tax.

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Replying to Clare_K:
RLI
By lionofludesch
24th Jul 2019 14:27

Clare_K wrote:

2- He was a sole trader working from a unit not doing MOTs, now he has moved to a new unit and trying to move the MOT Station name to his rather than the guy who used to do them who is retiring but they still want to keep testing in the area.
So its just bad timing that in the same month all the paperwork is going through we have had to register him for VAT starting 1st April, the fact MOTs are not vatable isn't the issue, its the trading names they will have issues with as if its not clearly him they complain.
Yes I am his accountant but only started last week so haven't got codes for 64-8 yet.

Not sure what your problem is here. If he has one business, two businesses or ten million businesses, the one registration will cover the lot.

File a Form 484 to take off the trading name if it helps salve your conscience.

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Replying to lionofludesch:
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By Clare_K
24th Jul 2019 15:11

lionofludesch wrote:

Clare_K wrote:

2- He was a sole trader working from a unit not doing MOTs, now he has moved to a new unit and trying to move the MOT Station name to his rather than the guy who used to do them who is retiring but they still want to keep testing in the area.
So its just bad timing that in the same month all the paperwork is going through we have had to register him for VAT starting 1st April, the fact MOTs are not vatable isn't the issue, its the trading names they will have issues with as if its not clearly him they complain.
Yes I am his accountant but only started last week so haven't got codes for 64-8 yet.

Not sure what your problem is here. If he has one business, two businesses or ten million businesses, the one registration will cover the lot.

File a Form 484 to take off the trading name if it helps salve your conscience.

Well yes in hindsight two would have been better to explain but anyway I have the answers now thanks, I was only asking as the vat guidelines basically imply if you change anything you need to tell them, so changing from one t/a to another would class as a change.

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Replying to Clare_K:
RLI
By lionofludesch
24th Jul 2019 15:28

Clare_K wrote:
....so changing from one t/a to another would class as a change.

You've still not grasped it. Having a trading name isn't mandatory.

Up to you and the client, obviously, whether you take that advice.

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Replying to lionofludesch:
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By Clare_K
24th Jul 2019 15:36

lionofludesch wrote:

Clare_K wrote: ....so changing from one t/a to another would class as a change.

You've still not grasped it. Having a trading name isn't mandatory.

Up to you and the client, obviously, whether you take that advice.

Please dont be rude, I am asking a question, I am sure you have all been in this situation once before. And no I didnt just start last week I became HIS accountant last week.
So would you try to change the registration to just Mr Smith or leave it going through as Mr Smith t/a old garage name?

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Replying to Clare_K:
RLI
By lionofludesch
24th Jul 2019 15:57

Clare_K wrote:

Please don't be rude, I am asking a question, I am sure you have all been in this situation once before. And no I didn't just start last week I became HIS accountant last week.
So would you try to change the registration to just Mr Smith .....

Rude ? Dear me - what was rude about that ?

The question you asked has been answered. It would be remiss of me to fail to point that out and leave you in doubt.

It wasn't me who suggested that you'd started as an accountant last week.

I wouldn't "try" - it's your client's right. Just do it. The trading name seems to be your issue. Get rid of the trading name. Job done.

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