Q- My client joined the Flat Rate scheme on 1st January 2016. He is a sole trader carpenter and has a flat rate of 14.5%, but also runs a small DIY shop part time. The shop was previously only open four days per week but the business has expanded, and from March 2018 the shop is open six days per week whilst my client continues to do occasional carpentry jobs. Previously the carpentry income made up the bulk of his turnover. Due to the change in the business, which flat rate percentage should they apply to the gross turnover as they applied 14.5% last year?
A- Our client has a flat rate of 14.5% as a carpenter because the materials supplied form less than 10% of his carpentry income; however, there is also a rate of 9.5% if the materials supplied are 10% or more of the carpentry turnover. As a retailer, he would Read More