Readers’ forum: Flat rate scheme dilemma

My client trades as a bar and restaurant on single premises and uses the flat rate scheme; he joined it on 1 January 2012.

As I understand it he must review the accuracy of his relevant flat rate category on this date each year based on turnover in the four quarters to December.

For the year ended 31 December 2023 the restaurant turnover exceeded the bar sales for the first time and I understand this means he must use the flat rate percentage for ‘catering’ rather than ‘pubs’ in the next 12 months. Is this correct? My client says that the blip in the restaurant sales was temporary because of some outside functions he did the food for and that bar sales will again exceed food sales in the coming 12 months because he has stopped doing outside functions. Does this make a difference?

He would obviously...