My client is a sole director/shareholder Ltd Co providing photography services. There are approximately 5 or 6 main shoots each year with a decent fee for each so turnover is usually around the £120-£140k mark. It is a corporate client base.
The VAT Flat Rate scheme has been operated with a favourable 11% rate to date. The usual direct costs include models, make-up artists, photography assistants, location costs and the hire of mobile photography facilities and these come in at say £30-£40k. None of these appear to qualify as 'goods' for Low Cost Trader purposes.
However, clothing is purchased for the use of models and either discarded or taken by the models. This will be more than the 2% required. Can anyone confirm that this would satisfy the relevant goods requirement?