What is the HMRC Flat Rate VAT Scheme?

The Flat Rate VAT Scheme simplifies VAT accounting for small UK businesses with VAT-exclusive turnover under £150,000. You charge clients 20% VAT but pay HMRC a lower fixed percentage based on your industry sector.

What is a Limited Cost Trader under VAT rules?

A business that spends less than 2% of its turnover or less than £1,000 a year on relevant goods is classified as a Limited Cost Trader and must use the higher 16.5% flat VAT rate.

What is the HMRC Flat Rate VAT Scheme?

The Flat Rate VAT Scheme simplifies VAT accounting for small UK businesses with VAT-exclusive turnover under £150,000. You charge clients 20% VAT but pay HMRC a lower fixed percentage based on your industry sector.

What is a Limited Cost Trader under VAT rules?

A business that spends less than 2% of its turnover or less than £1,000 a year on relevant goods is classified as a Limited Cost Trader and must use the higher 16.5% flat VAT rate.

Home/Uk/Vat Flat Rate Scheme Calculator

HMRC VAT Notice 733£150k Threshold

Flat Rate VAT Scheme Calculator

Calculate your VAT liability and savings under the Flat Rate VAT Scheme, evaluate 16.5% Limited Cost Trader rules, and compare against standard 20% VAT.

£90k VAT Threshold Tool →HMRC Tax Hub →