FL Memo Ltd © 2010

VAT Memo 2010-2011 Newsletter Issue 1 (June 2010)

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Flat rate scheme percentages

See VM ¶4666, ¶9979

When the standard rate of VAT goes up to 20% on 4 January 2011 the following percentages will apply under the flat rate scheme:

Category of business	Appropriate percentage
Accountancy or book-keeping	14.5
Advertising	11
Agricultural services	11
Any other activity not listed elsewhere	12
Architect, civil and structural engineer or surveyor	14.5
Boarding or care of animals	12
Business services that are not listed elsewhere	12
Catering services including restaurants and takeaways	12.5
Computer and IT consultancy or data processing	14.5
Computer repair services	10.5
Dealing in waste or scrap	10.5
Entertainment or journalism	12.5
Estate agency or property management services	12
Farming or agriculture that is not listed elsewhere	6.5
Film, radio, television or video production	13
Financial services	13.5
Forestry or fishing	10.5
General building or construction services*	9.5
Hairdressing or other beauty treatment services	13
Hiring or renting goods	9.5
Hotel or accommodation	10.5
Investigation or security	12
Labour-only building or construction services*	14.5
Laundry or dry-cleaning services	12
Lawyer or legal services	14.5
Library, archive, museum or other cultural activity	9.5
Management consultancy	14
Manufacturing fabricated metal products	10.5
Manufacturing food	9
Manufacturing that is not listed elsewhere	9.5
Manufacturing yarn, textiles or clothing	9
Membership organisation	8
Mining or quarrying	10
Packaging	9
Photography	11
Post offices	5
Printing	8.5
Publishing	11
Pubs	6.5
Real estate activity not listed elsewhere	14
Repairing personal or household goods	10
Repairing vehicles	8.5
Retailing food, confectionary, tobacco, newspapers or children’s clothing	4
Retailing pharmaceuticals, medical goods, cosmetics or toiletries	8
Retailing that is not listed elsewhere	7.5
Retailing vehicles or fuel	6.5
Secretarial services	13
Social work	11
Sport or recreation	8.5
Transport or storage, including couriers, freight, removals and taxis	10
Travel agency	10.5
Veterinary medicine	11
Wholesaling agricultural products	8
Wholesaling food	7.5
Wholesaling that is not listed elsewhere	8.5

* “Labour-only building or construction services” means building or construction services where the value of materials supplied is less than 10% of relevant turnover from such services; any other building or construction services are “General building or construction services”.

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Flat rate scheme thresholds

See VM ¶4714

The increase in the standard rate of VAT to 20% on 4 January 2011 will affect the flat rate scheme thresholds. Businesses with a total taxable annual turnover of up to £150,000 will be eligible to join the scheme as now. However, the threshold beyond which businesses will have to leave the scheme is a VAT-inclusive figure and so will go up, from £225,000 to £230,000. If a business exceeds that threshold as a result of a one-off transaction, it will be allowed to remain in the scheme if its tax-inclusive turnover in the following year is not expected to exceed £191,500 (£187,500 until 4 January 2011).

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Enforcement

Simplified accounting schemes

As previously announced

Output tax

Contents

SIMPLIFIED ACCOUNTING SCHEMES