I have a courier client who consider flat rate VAT scheme. His previous accountant told him he cannot include the lease and the fuel cost counting towards to the low cost business test. I believe its wrong as the relevant VAT notice said:
"Relevant goods are goods that are used exclusively for the purposes of your business, but do not include:
vehicle costs including fuel, unless you’re operating in the transport sector using your own, or a leased vehicle"
Also HMRC classified the couriers into the transport section.
My understanding is he can apply for the 10% flat rate. Anybody with similar experience?