VAT Flat Rate Scheme Calculator

Under HMRC's Flat Rate Scheme (FRS), you pay a fixed percentage of your gross turnover as VAT instead of accounting for VAT on every transaction. Select your business type to find your rate.

£

Enter the total amount you invoiced including the 20% VAT you charged

Select your business type and enter your turnover to calculate

All Flat Rate Scheme Categories

Business TypeFlat Rate %
Accountancy or book-keeping14.5%
Advertising11%
Agricultural services11%
Any other activity not listed elsewhere12%
Architect, civil and structural engineer or surveyor14.5%
Boarding or care of animals12%
Business services that are not listed elsewhere12%
Catering services including restaurants and takeaways12.5%
Computer and IT consultancy or data processing14.5%
Computer repair services10.5%
Debt collecting or factoring12%
Dentistry8.5%
Designing14.5%
Entertainment or journalism12.5%
Estate agency or property management services12%
Farming or agriculture that is not listed elsewhere6.5%
Film, radio, television or video production13%
Financial services13.5%
Forestry or fishing10.5%
General building or construction services (not covered below)9.5%
Hairdressing or other beauty treatment services13%
Hiring or renting goods9.5%
Hotel or accommodation10.5%
Investigation or security12%
Labour-only building or construction services14.5%
Laundry or dry-cleaning services12%
Lawyer or legal services14.5%
Library, archive, museum or other cultural activity9.5%
Management consultancy14%
Manufacturing fabricated metal products10.5%
Manufacturing that is not listed elsewhere9.5%
Manufacturing yarn, textiles or clothing9%
Membership organisation8%
Mining or quarrying10%
Packaging9%
Photography11%
Post offices5%
Printing8.5%
Publishing11%
Pubs6.5%
Real estate activity not listed elsewhere14%
Repairing personal or household goods10%
Repairing vehicles8.5%
Retailing food, confectionery, tobacco, newspapers or children's clothing4%
Retailing pharmaceuticals, medical goods, cosmetics or toiletries8%
Retailing that is not listed elsewhere7.5%
Retailing vehicles or fuel6.5%
Secretarial services13%
Social work11%
Sport or recreation8.5%
Travel agency10.5%
Veterinary medicine11%
Wholesaling agricultural products8%
Wholesaling food7.5%
Wholesaling that is not listed elsewhere8.5%

Click a row to select that category in the calculator above.

How the Flat Rate Scheme Works

The Basic Principle

You charge customers VAT at the standard rate (usually 20%) on your invoices, but you pay HMRC a lower flat rate percentage of your gross turnover. The difference is yours to keep.

For example, an accountant charges 20% VAT but only pays HMRC 14.5% — keeping the 5.5% difference.

Who Can Join?

  • ✅ VAT-registered businesses
  • ✅ Taxable turnover expected to be no more than £150,000 (excluding VAT) in the next 12 months
  • ❌ Businesses with 0% rated supplies in previous year
  • ❌ Businesses that have left the FRS in the last 12 months

First Year Discount

In your first year of VAT registration, you get a 1% discount on your flat rate — so an accountant would pay 13.5% instead of 14.5%.

Limited Cost Trader

If your costs on goods are less than 2% of turnover (or less than £1,000 per year), HMRC classes you as a "limited cost trader" and you pay 16.5% regardless of your sector.

This calculator is for guidance only. Always verify your flat rate with HMRC or a qualified accountant. Read the full Flat Rate Scheme guide →