Section 55K — Value Added Tax Regulations 1995: Category of business

Category of business 55K 1 Where, at a relevant date, a flat-rate trader is expected, on reasonable grounds, to carry on business in more than one category in the period concerned, paragraph (3) below shall apply. 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3 He shall be regarded as being expected, on reasonable grounds, to carry on that category of business which is expected, on reasonable grounds, to be his main business activity in that period.

4 In paragraph (3) above, his main business activity in a period is to be determined by reference to the respective proportions of his relevant turnover expected, on reasonable grounds, to be generated by each business activity expected, on reasonable grounds, to be carried on in the period. Table Category of business Appropriate percentage (1) “Labour-only building or construction services” means building or construction services where the value of materials supplied is less than 10 per cent of relevant turnover from such services; any other building or construction services are “general building or construction services”. Accountancy or book-keeping 14.5 Advertising 11 Agricultural services 11 Any other activity not listed elsewhere 12 Architect, civil and structural engineer or surveyor 14.5 Boarding or care of animals 12 Business services that are not listed elsewhere 12 Catering services including restaurants and takeaways 4.5 Computer and IT consultancy or data processing 14.5 Computer repair services 10.5 Dealing in waste or scrap 10.5 Entertainment or journalism 12.5 Estate agency or property management services 12 Farming or agriculture that is not listed elsewhere 6.5 Film, radio, television or video production 13 Financial services 13.5 Forestry or fishing 10.5 General building or construction services 9.5 Hairdressing or other beauty treatment services 13 Hiring or renting goods 9.5 Hotel or accommodation 0 Investigation or security 12 Labour-only building or construction services 14.5 Laundry or dry-cleaning services 12 Lawyer or legal services 14.5 Library, archive, museum or other cultural activity 9.5 Management consultancy 14 Manufacturing fabricated metal products 10.5 Manufacturing food 9 Manufacturing that is not listed elsewhere 9.5 Manufacturing yarn, textiles or clothing 9 Membership organisation 8 Mining or quarrying 10 Packaging 9 Photography 11 Post offices 5 Printing 8.5 Publishing 11 Pubs 1 Real estate activity not listed elsewhere 14 Repairing personal or household goods 10 Repairing vehicles 8.5 Retailing food, confectionary, tobacco, newspapers or children’s clothing 4 Retailing pharmaceuticals, medical goods, cosmetics or toiletries 8 Retailing that is not listed elsewhere 7.5 Retailing vehicles or fuel 6.5 Secretarial services 13 Social work 11 Sport or recreation 8.5 Transport or storage, including couriers, freight, removals and taxis 10 Travel agency 10.5 Veterinary medicine 11 Wholesaling agricultural products 8 Wholesaling food 7.5 Wholesaling that is not listed elsewhere 8.5