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Autumn Statement FRS Rules

Q. Regarding the Autumn statement FRS rules. Is it safe to say the the definition of bought in goods also include bought in services? For example if a I am a plumber and the size of my contracts varies, meaning I have buy in the services of other plumbers or an electrician, would this count as bought in good exceeding 2% of my turnover, or is it strictly relating to physical goods.

A. Thank you for your enquiry. Should you have to contract the services of other plumbers or electricians to complete a contract these costs would not be classed as “goods” for VAT purposes. Rather these would be “services” and not count towards 2% of your turnover test in determining your limited cost trading status.

Should you have any further queries, please do not hesitate to contact us.

This answer was provided by Qdos Accounting.

By Contractor Doctor

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