Flat rate Vat query

[orangeone]

Hi,
I am new to the forum and wondered if anyone can answer the following query for me :-
When choosing the Flat Rate Vat sector appropriate to a business, would it be considered reasonable to choose the trade classification that HMRC have put on the Vat Certificate of Registration if at a later date it is found that even though the business activities have not changed since registering, it is incorrect?
HMRC has put Agricultural Services as the classification on the Certificate of registration for Vat and the business is Tree surgery, and garden maintenance for mainly private customers.
Any comments regarding the appropriate percentage to use in this case and what would happen if they used Agricultural Services as above would be gratefully appreciated.
Thanks
Orangeone

 

[David Griffiths]

The activity on the registration certificate is irrelevant to the flat rate scheme - and to anything else as far as I can see. The HMRC guidance is quite clear:

You must choose the sector that best describes your main business activity for the coming year.

 

[orangeone]

Thanks for that, but being new to Vat matters he assumed that when HMRC had assigned him to that classification, they had done so on the basis of the information of his activities they had asked him to describe when filling out the original Vat Registration form. He thought logically that they would have allocated the classification on the basis of those activities which have not changed since then. Is this not a reasonable assumption to make?
Orangeone

 

[Williams lester]

Thanks for that, but being new to Vat matters he assumed that when HMRC had assigned him to that classification, they had done so on the basis of the information of his activities they had asked him to describe when filling out the original Vat Registration form. He thought logically that they would have allocated the classification on the basis of those activities which have not changed since then. Is this not a reasonable assumption to make?
Orangeone

Unfortunately not!

 

[orangeone]

I see. So does anyone have any idea which is the correct percentage to use for the activities described above as it looks as if it would be very unwise to get it wrong! I am I right in thinking it would be best to use Any other activity not elsewhere classified 10.5%
Thanks
Orangeone

 

[robindunne]

If it's your first year of VAT registration you get a further 1% reduction on the flat rate - hope that helps.