VAT Flat Rate

VAT Flat Rate for outward bounds activities

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I have a client who provides outward bounds activities including canoeing, climbing and residential activities.

He is looking to be on the flat rate for VAT but despite telephone calls with HMRC, it is unclear which rate he should apply for.

Is it the sport and recreation at 8.5%?  Or the other business at 12% or another rate?

Many thanks for your help and advice.

 

Replies (5)

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RLI
By lionofludesch
21st Jul 2017 16:16

Could be. Not sure what residential activities entails. Competitive cooking and cleaning or something ? What's the main activity ? That's the one which sets the rate.

Of course, if your client is a low cost trader, look no further than 16½%

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By secookie
21st Jul 2017 16:22

The residential part is accommodation, meals etc when people take up an overnight experience. It is all tied in with the outdoor activities he provides.

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Replying to secookie:
RLI
By lionofludesch
21st Jul 2017 16:29

Not sure that "overnight experience" is much clearer, to be honest.

But it begins to sound like it's an hotel business.

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Replying to fawltybasil2575:
RLI
By lionofludesch
21st Jul 2017 18:46

fawltybasil2575 wrote:

As lionofludesch has helpfully added, please be aware of the recent "limited costs trader" rules, which may or may not impact upon your client's business (frankly, I would be very surprised if they applied in your client's case).

Basil.

I dunno, Basil. Maybe. But it very much depends on how these activities are arranged. I'm thinking that happen a lot of the equipment is either capital or hired and a fair bit is for staffing costs.

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Replying to fawltybasil2575:
RLI
By lionofludesch
21st Jul 2017 21:42

As you say, Basil.

The answer is in the numbers.

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