VAT Flat Rate Scheme - plant repairs & tools

Do Plant repairs and small tools qualify as relevant cost

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I have a self employed groundworker who currently utilises FRS. When evaluating the new rules, does expenditure for plant repairs and on small tools (i.e not capital expenditure) qualify as relevant goods?

Also, presumably things like telephone calls and public liability insurance are classed as services and so do not qualify?

Thanks

 

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By cjtrevor
28th Mar 2017 23:50

Plant repairs are most likely to be services and not goods, as are telephone costs, insurance etc.

With small tools it depends how harsh the definition of capital goods is applied. If the small tools are in effect consumable items then they should be allowed as goods. If in reality they are expected to have an enduring life of say a year or more then even if they are of low value they strictly would be capital in nature.

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RLI
By lionofludesch
29th Mar 2017 12:06

I think your groundworker is struggling.

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By Tonykelly
29th Mar 2017 13:58

Plant repairs - if he carries out the repairs himself, then the materials used would be ok for FRS purposes ie classified as relevant goods.
This is similar to replacing the toner in your office printer yourself, ie goods used in the business.
However, as pointed out, if he handed the machine over to a third party for the repairs, then the whole thing becomes a service received.

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