Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Fri, 07 Oct 2022 11:41:15 GMT by Gidzee
Hi, we are a small marketing consultancy (2 people) and have just registered for VAT and the flat rate scheme. There seems to be a grey area for marketing and I'm not sure which flat rate is the one to use? Advertising is listed as 11%, Management Consultancy (which we're not) is 14% and 'Business services not listed elsewhere' is 12%. Anyone else registered for VAT FR scheme with a similar business that could advise please? Many thanks
Posted Tue, 11 Oct 2022 14:33:08 GMT by HMRC Admin 17
Hi.

We are unable to provide a specific trade sector and % for you.

However please see set 4 of the following guidance if you are unable to find a specific sector:

Flat Rate Scheme for small businesses (VAT Notice 733)    .

Thank you.

 
Posted Thu, 01 Dec 2022 16:41:52 GMT by Jason Croke
Advertising services is not marketing, if you are a marketing consultancy then you will know more than anyone that there is a very obvious difference between advertising and marketing. You're not management consultancy, so therefore you must be "services listed elsewhere", although it is down to you to determine your FRS sector. have a look here at the extended and more detailed list of sectors https://www.gov.uk/hmrc-internal-manuals/vat-flat-rate-scheme/frs7200 Why have you chosen FRS? There is a limited cost trader rule that means if you meet the conditions, regardless of your chosen sector, you must use the higher limited cost trader rate of 16.5% which basically removes any financial benefit of using FRS. https://www.gov.uk/guidance/flat-rate-scheme-for-small-businesses-vat-notice-733--2 As all VAT registered business, including FRS users, must now also be MTD compliant and file their VAT returns digitally using accounting software or bridging software, the administrative benefits of using FRS is also somewhat lost, so double check to make sure you've not chosen a scheme that isn't achieving what you want it to.

You must be signed in to post in this forum.