VAT & Flat Rate Scheme Calculator
Add or remove 20% VAT in a click — then compare the Flat Rate Scheme against standard VAT to see which leaves your business better off.
VAT and the Flat Rate Scheme, briefly
UK standard VAT is 20%, and registration becomes compulsory once taxable turnover passes £90,000 in any rolling 12 months. On the Flat Rate Scheme you pay a fixed sector percentage of your gross turnover instead of tracking every purchase — from 4% for food retailers to 14.5% for labour-only construction, with 16.5% for limited-cost businesses and a 1% first-year discount.
The right scheme depends on how much VAT you actually incur on costs. Our VAT return service reviews it for you and files every return on time.
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Frequently asked questions
Enter any amount and the calculator shows net, VAT and gross both ways u2014 adding 20% to a net price or extracting VAT from a gross price.
Registration is compulsory once taxable turnover passes u00a390,000 in any rolling 12-month period, or if you expect to pass it within the next 30 days.
It depends on your sector rate and how much input VAT you reclaim. The comparison applies your sectoru2019s flat rate u2014 including the 1% first-year discount u2014 against standard VAT accounting.