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VAT Flattery Benefits HMRC

6 January

Following on from the 'VAT Comes Down, Must Go Up' article, one of WKH's clients, Terry Dear of the Shoe Box in Leys Avenue, Letchworth, was inspired to look at the flat rates for differing activities across the board, comparing pre 1 December 2008 and post 31 December 2009 percentages. He found that in many cases the flat rate has been increased for 2010 above the 2008 level. 

A few lucky categories, such as Computer Repair Services and Estate Agency, are reduced in 2010 compared with 2008 and there are a number of categories that have returned to their 2008 levels.  

Where rates have risen, the increases are between 0.5% and 2.5%, with the highest riser being Agricultural Services.

It is important that any trader using the flat rate scheme reconsiders whether the scheme still remains appropriate and that the correct category for the business is being used. Remember that where a business fits into two categories, only the rate that applies to the category that constitutes the majority of the business should be used.  

If you would like to find out more about the flat rate scheme and its impact on your business, please get in touch with your usual WKH contact or John Sheehan on 01462 687333 or jsheehan@wkhca.co.uk.