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Where Taxpayers and Advisers Meet

Flat Rate VAT

dhse
Posts:7
Joined:Wed Aug 06, 2008 3:26 pm
Flat Rate VAT

Postby dhse » Thu Mar 17, 2022 9:07 pm

Hi,
I am a locksmith and need to register for VAT as just gone over the threshold - I fix locks and let householders into houses and cars where they are locked out - or replace locks for householders or landlords. I am trying to decide on the correct flat rate % to go for and have settled on "repairing personal or household goods" which at 10% is better than "any other activities" at 12%
Am I on the right track or is there any advice on what I should go for, I cant find any reference for a locksmith anywhere !

robbob
Posts:3228
Joined:Wed Aug 06, 2008 4:01 pm

Re: Flat Rate VAT

Postby robbob » Fri Mar 18, 2022 10:36 am

Your choice seems very reasonable to me unless i am missing something on my quick search - THATS VERY EASY DONE WITH THE ECLECTIC LIST HMRC PROVIDE

Not sure you have seen the "full monty list" or not here is the link
https://www.gov.uk/hmrc-internal-manuals/vat-flat-rate-scheme/frs7200#IDAVDBDG

i would agree tis on seems most apt
Repair of boots, shoes, household and electrical goods, watches, clocks, or jewellery Repairing personal or household goods
two warnings
flat rate is applied to gross vat inclusive sale - is if £10+vaqt sale = £12 you pay lfat rate on £12 not £10 ! so you are paying more than the stated vat rate !
watch out for "limited cost" trader restrictions

hints
dont forget the 1% fisrt year discount.
and you can claim vat on services for 6 months prior to registration and assets for 4 years (i think)

good luck

ps worth reaidng notice 733 in full unfortunately flat rate is tehnically more complicated than normal vat ref silly rules you would not expect - eg you pay vat on zero rated sales !


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