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VAT Classification - IT Consultant vs Computer repairs

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    VAT Classification - IT Consultant vs Computer repairs

    Hi guys, looking for a bit of advice . . . I'm VAT registered and registered for FRS all taken care of by the accountants. They have registered me as an IT Consultant with a flat rate of 13%, if I am registered as Computer Repair Services I would get a flat rate of 9.5%

    I contract full time in IT support (i.e. desktop and server support) and provide no consultancy services as such, it breaks and I fix it!

    Is there any reason why I should be registered as an IT Consultancy because I am a contractor even though my line of business is actually repairing computers? The only thing I can think of is that I do not supply the parts (and therefor don't buy them / pay VAT on them etc).

    Cheers for any thoughts

    Adrian

    #2
    Originally posted by adep View Post
    Hi guys, looking for a bit of advice . . . I'm VAT registered and registered for FRS all taken care of by the accountants. They have registered me as an IT Consultant with a flat rate of 13%, if I am registered as Computer Repair Services I would get a flat rate of 9.5%

    I contract full time in IT support (i.e. desktop and server support) and provide no consultancy services as such, it breaks and I fix it!

    Is there any reason why I should be registered as an IT Consultancy because I am a contractor even though my line of business is actually repairing computers? The only thing I can think of is that I do not supply the parts (and therefor don't buy them / pay VAT on them etc).

    Cheers for any thoughts

    Adrian
    My immedaite reaction is it looks like you are in the right category.

    If you were buying hard drives, and components to fix the computer then yes maybe you are Computer Repair Services, but looks like you are selling your knowledge on how to fix computers as a consultant.

    IMHO
    Never has a man been heard to say on his death bed that he wishes he'd spent more time in the office.

    Comment


      #3
      Originally posted by Scrag Meister View Post
      My immedaite reaction is it looks like you are in the right category.

      If you were buying hard drives, and components to fix the computer then yes maybe you are Computer Repair Services, but looks like you are selling your knowledge on how to fix computers as a consultant.

      IMHO
      Would have to agree with Scrag.

      IMHO, a break-fix engineer is the guy from Dell who comes around to fix your Dell laptop when, for example, the motherboard is fried.

      He swaps out the faulty part, installs a new one and then rinses and repeats.

      You, on the other hand, are providing specialist knowledge - regardless of the market value of that knowledge.

      I understand there may be times you are replacing hardware components in PC's and servers but, nowadays, would imagine that is only a small proportion of your work.

      Have you asked your accountant why he registered you as an IT Consultant and not Computer Repair Services?

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