HMRC flat rate ready reckoner

[diesel]

I work as a specialist processes engineer.

Previously i used to use the HMRC ready reckoner and class my selfy under the "architect, civilm, structural engineer" rating - which brookson used to advise me.

However, now i not with brooksons, thinking is this the correct classifciation for me?

As i have been paying 13% flat rate, but wonder if i class my trade sector as "any other activity not listed elsewhere" i can use the 10.5% rate?

As my accountant is not fully familiar with my trade sector they have not given me specific advice.

If i change my sector to the "other" will it raise questions with HMRC and could i be open to questions from them??

Any advice welcome from forum members...

[Clare@InTouch]

You have to be able to show that your choice was reasonable and logical. Changing your flat rate percentage now will more than likely result in an enquiry from HMRC, so it depends on whether you think you can defend it.

[diesel]

You have to be able to show that your choice was reasonable and logical. Changing your flat rate percentage now will more than likely result in an enquiry from HMRC, so it depends on whether you think you can defend it.

thanks for reply. yes agree i would have to defend it, but it now seeems clear that my trading sector/activity is not listed in their categories. As before i was brushed under architect/civil engineer, which i am clearly not.

as June is end of existing VAT quarter, do i need to get y accountant to write a letter to state the change to justifty this? ( i am not looking at recalculating previous VAT quarters, even though i could argue the case)

[Fred Bloggs]

I work as a process engineer too and I am using the 13% category. Everyone I have spoken to in a similar area of expertise uses this category.

[diesel]

I work as a process engineer too and I am using the 13% category. Everyone I have spoken to in a similar area of expertise uses this category.

Fred, thanks for reply. what is your basis of using this category, if you like me are Not an architect or civil eng?

[kontracta Matt]

To do some reading around this before you meet your accountant, the HMRC has a fairly extensive guide at:

HM Revenue & Customs

Sections 4.2 and 4.4 would be relevant to you - although I've only had a quick glance so there may be others.

Please bear in mind the flat rate scheme is deemed to be a concession by HMRC so changing would not be straightforward. Also there can be no retrospective changes.

[diesel]

To do some reading around this before you meet your accountant, the HMRC has a fairly extensive guide at:

HM Revenue & Customs

Sections 4.2 and 4.4 would be relevant to you - although I've only had a quick glance so there may be others.

Please bear in mind the flat rate scheme is deemed to be a concession by HMRC so changing would not be straightforward. Also there can be no retrospective changes.

Thank you for that link, Suppose 4.4. answers the question, which was not as apparent in the ready reckoner.

[Fred Bloggs]

Fred, thanks for reply. what is your basis of using this category, if you like me are Not an architect or civil eng?

Closest match/what everyone else seems to do. Not a great basis, but wise not to stand out from the crowd.

[kontracta Matt]

Thank you for that link, Suppose 4.4. answers the question, which was not as apparent in the ready reckoner.

No worries. Good luck in any case!