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Vat flat rate for couriers

Hello,

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?

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11th Feb 2019 13:56

I have recently backdated the registration for 2 of our courier clients to join the VAT FRS, as they are both working for 1 large corporation, and yes they definitely do qualify, due to the nature of their trade. Fuel alone would usually hit the spend requirement.

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By Lala77
11th Feb 2019 14:16

Many thanks, i was sure there is no other answer, but the previous accountant try convince the client im wrong.

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11th Feb 2019 17:23

For couriers, freight, removals and taxis - vehicles, parts and fuel qualify as relevant goods and hence can register for FRS.

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