VAT FRS - 2 businesses 1 company 1 rate?

VAT FRS %? and potential changed to %?

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Hello

Please can someone help me with the following query.

We have a company, which contains 2 businesses. One if a mechanics (eligble for the 8.5% rate) and the other IT consultany (eligble for the 14.5% rate).

Previously, the majority of the income has come from the mechanics side and VAT has been charged on the total income at 8.5%

However, for the current quarter IT consultancy income has overtaken the mechanics side of the business.

My question is - should all income be charged at the 14.5% rate? Or is it only assessed annually? If so when is the annual assessement?

Thanks for your help

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Replying to fawltybasil2575:
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By rae10000
12th Apr 2017 09:35

Hi Basil

Thanks for your help, that's great.

Regarding low cost trader status. The purchases made by the mechanics side of the company more than push both 'businesses' over the threshold when considered jointly (The IT consultancy on its own would be a low cost trader). Should they be considered separately? And therefore apply the full 16.5% to the whole company?

Thanks again

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