Flat rate VAT - Telecom and IT consultancy difference

[ramesh]

Hi,

I am working as a consultant in networking. My job responsibilities are network consulting, network security, pre/post-sales in networking and troubleshooting. Does networking fall under IT consultancy?. Or is it under telecom?. Telecom is currently charged at 12%, IT consultancy is charged at 14.5%.

Which one do I need to choose?. My company is registered as computer consultancy, bank account was telcom & then changed consultancy. Should i change everything to telecom?.

I dont see the difference anywhere.

thanks for your help.
-ramesh.

[Batcher]

Hi,

I am working as a consultant in networking. My job responsibilities are network consulting, network security, pre/post-sales in networking and troubleshooting. Does networking fall under IT consultancy?. Or is it under telecom?. Telecom is currently charged at 12%, IT consultancy is charged at 14.5%.

Which one do I need to choose?. My company is registered as computer consultancy, bank account was telcom & then changed consultancy. Should i change everything to telecom?.

I dont see the difference anywhere.

thanks for your help.
-ramesh.

What did your accountant say when you asked them? Have you tried calling the VAT helpline?

[TheCyclingProgrammer]

What did your accountant say when you asked them? Have you tried calling the VAT helpline?

WHS.

The purpose of the different rates for different industries is to account for anticipated levels of input VAT on expenses which would obviously vary depending on what you do.

IMO what you do comes under IT consultancy but a quick call to the VAT helpline should give you your answer - get a call reference number so if it ever gets queried in future you have some comeback.

[Craig at Nixon Williams]

I am working as a consultant in networking. My job responsibilities are network consulting, network security, pre/post-sales in networking and troubleshooting. Does networking fall under IT consultancy?. Or is it under telecom?. Telecom is currently charged at 12%, IT consultancy is charged at 14.5%.

Ultimately this is self-assessed, you do not get approval for this from HMRC. Going from your description, I would select IT consultancy in your situation.

Craig

[eazy]

Initial verbal discussions with the Flat Rate VAT advice centre was that they can not confirm the category over the phone. You could write to HMRC VAT advice centre, detailing your company activities asking them to advise on the correct flat rate VAT category. I did that few years back and HMRC advised on the category to use in writing.

I was advised that any self selectected category if challenged could lead to difference plus interest plus possible penalties if chosen category selection cannot be justified. If advised in writing by HMRC, then if the category is subsequently found to be incorrect no interest or penatlties will be charged & you will be advised of a date when to stop using the original category.

[TheCyclingProgrammer]

Initial verbal discussions with the Flat Rate VAT advice centre was that they can not confirm the category over the phone. You could write to HMRC VAT advice centre, detailing your company activities asking them to advise on the correct flat rate VAT category. I did that few years back and HMRC advised on the category to use in writing.

I was advised that any self selectected category if challenged could lead to difference plus interest plus possible penalties if chosen category selection cannot be justified. If advised in writing by HMRC, then if the category is subsequently found to be incorrect no interest or penatlties will be charged & you will be advised of a date when to stop using the original category.

Interesting that HMRC cannot give advice on the phone; I suppose they want to cover their arses in case somebody gives them inaccurate information.

As Martin says, I'd go for IT consultancy in OPs case but if they really aren't certain this sounds like the best thing to do.

[Scrag Meister]

Sounds like IT to me.

If you were up a mast in a field then maybe telecoms.

[ramesh]

Thank you guys

Thank you guys. I contacted the accountant and he said its safe to leave it as computer consulting. Anyway, I am going to write a letter to HMRC

[NBHolt]

Similar Position

I'm in a similar position, I contract as a systems/infrastructure engineer and I'm currently down as IT Consultancy however there is a computer repair category which i'm unsure whether i could be classed as.

[mudskipper]

I'm in a similar position, I contract as a systems/infrastructure engineer and I'm currently down as IT Consultancy however there is a computer repair category which i'm unsure whether i could be classed as.

So have you tried following the advice already offered in this thread?