Flat Rate Scheme

Work out your flat rate VAT for your trade, and compare it with normal VAT accounting.

Example values, change them. The answer updates as you type.

Turnover including VAT

Everything you sold in the period, with the VAT you charged.

Period

Your trade

The trade that brings in most of your turnover, as HMRC lists them.

Goods bought, including VAT

For the limited cost business test. Leave blank to skip the test.

VAT on your purchases

To compare with normal VAT accounting. Leave blank to skip.

£4,350.00Full breakdown below Add your turnover including VAT to see your flat rate VAT.Turnover including VAT can't be 0. Enter your turnover including VAT in pounds.Turnover including VAT can't be negative. Enter your turnover including VAT in pounds.Turnover including VAT can't be more than 100,000,000 pounds.Turnover including VAT can only go to pence: 2 decimal places.Turnover including VAT must be a number.Goods bought, including VAT can't be negative. Enter your goods bought, including VAT in pounds.Goods bought, including VAT must be a number.Goods bought, including VAT can't be more than 100,000,000 pounds.Goods bought, including VAT can only go to pence: 2 decimal places.VAT on your purchases can't be negative. Enter your VAT on your purchases in pounds.VAT on your purchases must be a number.VAT on your purchases can't be more than 100,000,000 pounds.VAT on your purchases can only go to pence: 2 decimal places. £4,350.00 Full breakdown below

Flat rate VAT to pay

£4,350.00

At your 14.5% flat rate you pay £4,350.00 for this quarter.

14.5% Your flat rate

£600.00 Limited cost goods limit

– Flat rate against normal VAT

Not yet fact-checkedMethod and sources

Flat rate VAT £4,350.00
Rest of your turnover £25,650.00

Add what you spend on goods to check the 16.5% limited cost rule. Until then we use your trade's rate.

What is the VAT Flat Rate Scheme?

The Flat Rate Scheme lets a small business pay HMRC a fixed percentage of its turnover including VAT. The percentage depends on your trade: an accountant pays 14.5%, for example. You keep the rest of the VAT you charge, but you can't reclaim VAT on most purchases.

How we worked it out

£30,000.00 × 14.5% = £4,350.00 flat rate VAT

Who can join, and the first-year discount

You can join if you expect VAT-taxable turnover of £150,000 or less, excluding VAT, over the next 12 months. In your first year of VAT registration, your flat rate is one percentage point lower. An accountant in their first year pays 13.5% instead of 14.5%.

Flat rates by trade

Type of business	Flat rate
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 not listed elsewhere	12%
Catering services including restaurants and takeaways	12.5%
Computer and IT consultancy or data processing	14.5%
Computer repair services	10.5%
Entertainment or journalism	12.5%
Estate agency or property management services	12%
Farming or agriculture 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	10.5%
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 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	6.5%
Real estate activity not listed elsewhere	14%
Repairing personal or household goods	10%
Repairing vehicles	8.5%
Retailing food, confectionery, tobacco, newspapers or children’s clothing	4%
Retailing pharmaceuticals, medical goods, cosmetics or toiletries	8%
Retailing 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 not listed elsewhere	8.5%

Source: GOV.UK: VAT Flat Rate Scheme, work out your flat rate. Checked 10 Oct 2026.

Worked examples

Accountant, £30,000 in a quarter, goods £1,000

Turnover including VAT £30,000Period A quarterYour trade Accountancy or book-keepingIn my first year of VAT registration noGoods bought, including VAT £1,000VAT on your purchases –

At your 14.5% flat rate you pay £4,350.00 for this quarter.

Flat rate VAT to pay: £4,350.00
Your flat rate: 14.5%
Limited cost goods limit: £600.00

IT consultant in their first year, £24,000 in a quarter

Turnover including VAT £24,000Period A quarterYour trade Computer and IT consultancy or data processingIn my first year of VAT registration yesGoods bought, including VAT £1,500VAT on your purchases –

At your 13.5% flat rate you pay £3,240.00 for this quarter.

Flat rate VAT to pay: £3,240.00
Your flat rate: 13.5%
Limited cost goods limit: £480.00

Consultant buying almost no goods: limited cost rate

Turnover including VAT £30,000Period A quarterYour trade Management consultancyIn my first year of VAT registration noGoods bought, including VAT £100VAT on your purchases –

Your goods are under the limited cost limit, so you pay 16.5%: £4,950.00 for this quarter.

Flat rate VAT to pay: £4,950.00
Your flat rate: 16.5%
Limited cost goods limit: £600.00

Common questions

How is flat rate VAT calculated?

Multiply your turnover including VAT by your trade's flat rate. An accountant with £30,000 of turnover including VAT in a quarter pays £4,350.00, at 14.5%.

What are the disadvantages of flat rate VAT?

You can't reclaim VAT on most purchases, apart from some capital assets over £2,000. If you spend little on goods, you may have to use the 16.5% limited cost business rate, which can cost more than normal VAT.

What is a limited cost trader?

You're a limited cost business if your relevant goods, including VAT, cost less than 2% of turnover or £1,000 a year (£250 a quarter). You then pay 16.5% of turnover, or 15.5% in your first year.

Does turnover include VAT on the Flat Rate Scheme?

Yes. You apply your flat rate to your turnover including VAT, which counts the VAT you charge on your sales.

When do you have to leave the Flat Rate Scheme?

You must leave if your turnover including VAT was over £230,000 in the 12 months before your joining anniversary. You must also leave if you expect it to go over that in the next 12 months, or in the next 30 days alone.

When is your next VAT return due?

Work out the filing and payment dates for any VAT period, with the weekend rule applied.

Find your deadline

More VAT calculators

Method and sources

Each calculator applies HMRC's published rates and rules, works in whole pence and rounds to the nearest penny. Every step is shown, and every figure links to its GOV.UK or HMRC page with the date we checked it. Before launch, each worked example is checked against HMRC's own guidance. Spot something wrong? Tell us and we will fix it and note the change.

Turnover includes the VAT you charge, as the scheme requires.
The comparison assumes every sale is at the standard rate.
Rounded to the nearest penny; half a penny rounds up.

GOV.UK: VAT Flat Rate Scheme, work out your flat rate Checked 10 Oct 2026
GOV.UK: VAT Flat Rate Scheme, eligibility Checked 10 Oct 2026
HMRC: Flat Rate Scheme for small businesses (VAT Notice 733) Checked 10 Oct 2026
The Value Added Tax (Amendment) Regulations 2017 (SI 2017/295), regulation 55KA Checked 10 Oct 2026
GOV.UK: VAT rates Checked 10 Oct 2026
GOV.UK: VAT Flat Rate Scheme (all pages) Checked 10 Oct 2026
GOV.UK: Register for VAT Checked 10 Oct 2026