Flat Rate Ready Reckoner

I have just responded to a query in Taxation magazine regarding someone who is using the Flat Rate Scheme.

The person in question is undertaking personal tax returns for UK and US individuals and has registered under accounting and bookkeeping services. Interestingly, they raise the question as to whether they should really be under 'other business services' which is a lower rate.

To help them decide what HMRC deem to be included within each of these headings they called the ever helpful VAT Helpline - only to be told it is a self-assessed tax!

Our answer to the query? It is simple when the under-used Flat Rate Ready Reckoner on HMRC's website is referred to. This helpful tool provides examples of which trades HMRC believe fit within these sector headings. Under 'Accountancy and Bookkeeping' they include 'income tax preparation services'. The case for a lower rate in this example is closed!

Do bear in mind however that accounting services to US individuals will be outside the scope and therefore not form part of the flat rate income....

Link to ready reckoner:
http://vatreadyreckoner.hmrc.gov.uk/HMC?cmd=sector&action=list&?rnd=76917384