Flat Rate and project Management

[Jessica@WhiteFieldTax]

HMRC : How can I help
OP : I am a project manager and am starting a contract though a single person limited company and would like to know what category from your VAT list I fall under.
HMRC : I see, let me switch systems for a second. Could you supply your name, limited company information, accountants name and correspondence address
OP : <all the above>
HMRC : Right got it. Where were we... Ah yes the option is you want is xxxx
OP : Great thanks. Speak to you soon
HMRC : You can be sure of that!! Goodbye.

Ok, so I asked for that...

I'm not convinced that HMRC is that joined up. In any event IR35 dodging - or any other compliance -by keeping your head under the parapet is a slippery slope. Ideally - although the world isn't ideal - everything should be so squeaky clean that if HMRC do turn up they go way happy.

[Andrew@Wisteria]

I always tend to be nervous about recommending flat rates as its a huge judgement issue. I'd encourage people to ring HMRC, discuss it with them, then make a note of the call reference - provides some cover if the rate is queried in the future. I may be being over cautious though.

You can pick a rate that is reasonable.

[northernladuk]

I always tend to be nervous about recommending flat rates as its a huge judgement issue. I'd encourage people to ring HMRC, discuss it with them, then make a note of the call reference - provides some cover if the rate is queried in the future. I may be being over cautious though.

HMRC : How can I help
OP : I am a project manager and am starting a contract though a single person limited company and would like to know what category from your VAT list I fall under.
HMRC : I see, let me switch systems for a second. Could you supply your name, limited company information, accountants name and correspondence address
OP : <all the above>
HMRC : Right got it. Where were we... Ah yes the option is you want is xxxx
OP : Great thanks. Speak to you soon
HMRC : You can be sure of that!! Goodbye.

[Jessica@WhiteFieldTax]

DAlternatively if you have an accountant ask him what he recommends.

I always tend to be nervous about recommending flat rates as its a huge judgement issue. I'd encourage people to ring HMRC, discuss it with them, then make a note of the call reference - provides some cover if the rate is queried in the future. I may be being over cautious though.

[MPwannadecentincome]

Alternatively if you have an accountant ask him what he recommends.

LOL I tried asking my accountant and the response was they do not know my business so they cannot advise me! And these are the same people who did my VAT registration for me.

[lje]

I noticed that the rates have increased by a not insignificant amount across most, if not all, categories. Now I know the last rates were set in 2008, but does this not smack of a ‘hidden from public view’ VAT rate increase by Gordy and his chums? Normal VAT does not go up every 2 years does it

No - but VAT did go up in January this year (from the discounted 15% back to 17.5%) and so the flat rate scheme amounts went up too.

[nodric]

Slightly off topic, but having left Blighty some years before 'Flat Rate' was relevant, I went and had a read following the links above, always good to be informed.

I noticed that the rates have increased by a not insignificant amount across most, if not all, categories. Now I know the last rates were set in 2008, but does this not smack of a ‘hidden from public view’ VAT rate increase by Gordy and his chums? Normal VAT does not go up every 2 years does it

Ultimately someone has to pay, and indirectly 'Joe Soap' is now paying more as a result of these tax increases. i.e. If we have to charge more, someone else down the foodchain is impacted.

Let’s all go vote Labour again (Sorry thats yet another topic)

[Clippy]

I have used the below as I work in the IT industry:

Computer and IT consultancy or data processing 13%

Don't forget, in your first year of registration, you are given a 1% discount so it will be 12%.

[al_cam]

I think you want SIC code 7414 - Business & management consultancy
which comes under trade sector Management Consultancy for FRS purposes

Did you not have to put something down for your company industry when you registered your company? This may dictate your FRS category and prevent you using Management Consultancy - probably best speak to your accountant.

http://www.companieshouse.gov.uk/abo...tiesList.shtml

http://vatreadyreckoner.hmrc.gov.uk/

Al.

[kaiser78]

Don't know if you have seen this link to HMRC below and scroll half way down to the 2010 section onwards http://www.hmrc.gov.uk/vat/start/schemes/flat-rate.htm

Choose yourself in as generic a category as possible (easier for PM roles than others), with the lowest VAT rate relevant to what you do. Alternatively if you have an accountant ask him what he recommends.

[gpc]

Hi all,

hopefully the last question.......for a while...


I'm trying to get the right classification for my flat rate VAT application. I am a project/programme manager (or Change Manager) by trade but cant find a suitable classification.

The closest i get under financial is Management Consultancy.......

Are there any other PM on here, what do you use for your classification...

Apologies if I have missed something on the HMRC website.....going a bit goggle eyed!!!!!

Ta
Gpc