My family have a sports business which is studio based. We've grown it from scratch to a thriving small business which we are so proud of. We are now at the VAT threshold but being classed as a limited goods company we need to pay 16.5% VAT. We can't pass this cost on to customers without hiking the prices which we don't want to do.
If we can show we spend £1000 or 2% turnover on goods we can pay 8.5% VAT. Every where I look I can see lists of items NOT included in this but nowhere a clear list of what can be included. Feeling very frustrated. I'm not sure the business could comfortably survive if we need to pay 16.5% VAT in addition to our corporate tax.
Did you check the government website. Basically there is no list of what can be included but there is eligibility criteria of the goods that can be counted and a defined list of what can’t. Will post screenshots then explain them.