flat rate scheme for mixed businesses

[Louisa@AardvarkAccounting]

If you are still on the flat rate scheme but you have a mixture of trades - then the % you use is determined by the activity which brings in the highest turnover.

So, if IT contracting is the main activity still, then you'd carry on using 14.5%, until any other trade exceeds this turnover.

Some things to bear in mind: if you are subject to the Ltd cost trader rules, then you will need to use 16.5% on all the gross sales subject to VAT.

Plus, if your VAT inclusive sales exceed £230,000, you will no longer be eligible for the FRS, unless this is a one off and then you can request to remain on the scheme.

[northernladuk]

Have you asked your accountant for advice? What did they suggest?

[bluepeter]

hi

im a contractor in IT but am moving into online retail as well as another way of investing. I understand that companies can
have multiple SIC codes allowing me to use the same company to do this, but how would this work with flat rate vat?

retail has 7.5% or so and IT has 14.5, and now i would be moving to the new higher band anyway since April, how could this work?

can you simply calclulate just the retail sales at 7.5% and then software work at 16.5%, assuming my sales dont pull me back down again?

I want to avoid setting up another company

thanks