Flat Rate VAT Calculator
Calculates UK flat-rate VAT scheme amounts for eligible small businesses
Total invoiced amount including 20% VAT
Your HMRC flat rate for your business sector
Common UK Flat Rates
Turnover multiplied by your flat rate percentage
VAT charged at 20% on your invoices
Difference between VAT collected and VAT payable
Frequently Asked Questions
What is the UK flat rate VAT scheme?
The flat rate scheme lets eligible small businesses pay a fixed percentage of gross turnover as VAT instead of tracking VAT on every purchase. It simplifies accounting. You still charge customers the standard 20% VAT but pay HMRC a lower flat rate.
Who can use the flat rate VAT scheme?
Businesses with VAT-taxable turnover of 150,000 or less (excluding VAT) can join. You must leave if turnover exceeds 230,000 in any 12-month period. New businesses get a 1% discount on their flat rate for the first year.
Is the flat rate scheme cheaper?
It depends on your business type and expenses. Businesses with low input VAT (like consultants with few purchases) often save money. Businesses with high material costs may pay more than under standard VAT. Calculate both methods to compare.
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