Topic: Limited cost trader for VAT
I have contacted by many of my client's who provide services as Lorry Drivers, many of whom work through their own Limited company.
Most of them were VAT registered and after my advise most of them deregistered as I consider them to be Limited cost traders.
Now many of my client are claiming that their fellow workers are still registered and using the FRS scheme at 12% rate and their Accountants are claiming these for them.
From my understanding if you only provide your service as a driver then the petrol/motor expenses would not be considered as relevant goods and therefore the FRS rate of 16.5% would apply.
Please could let me know if I am misunderstanding the legislation and advising the clients incorrect.