Flat Rate VAT Calculator
Work out how much VAT you owe HMRC under the Flat Rate Scheme. Enter your VAT-inclusive turnover and trade sector rate to see what’s due and what you keep.
Calculate Your Flat Rate VAT
Enter your VAT-inclusive turnover for the period and your flat rate percentage to see exactly how much VAT you owe HMRC, and how much of the VAT you charged customers you get to keep.
Turnover & Rate
Enter your VAT scheme details
VAT Due Estimate
What you owe HMRC and what you retain
Common Flat Rate Percentages
HMRC sets a flat rate percentage for each trade sector. These are some of the most commonly used rates; your exact sector may differ, so always confirm against the official HMRC list.
| Trade Sector | Flat Rate |
|---|---|
| Pubs | 6.5% |
| Retailing not listed elsewhere | 7.5% |
| General building or construction services | 9.5% |
| Hotels or accommodation | 10.5% |
| Advertising | 11% |
| Estate agency or property management | 12% |
| Catering, restaurants and takeaways | 12.5% |
| Accountancy or book-keeping | 14.5% |
| Computer and IT consultancy | 14.5% |
| Limited cost trader | 16.5% |
Flat Rate VAT FAQ
Answers to the most frequently asked questions about the UK VAT Flat Rate Scheme.
The Flat Rate Scheme lets small businesses pay VAT to HMRC as a fixed percentage of their VAT-inclusive turnover, rather than calculating the difference between VAT charged on sales and VAT reclaimed on purchases. It is designed to simplify VAT record-keeping for eligible small businesses.
HMRC assigns a flat rate percentage based on your business’s trade sector, reflecting typical costs in that industry. Businesses that spend very little on goods, known as limited cost traders, must generally use a higher fixed rate of 16.5% regardless of sector.
Businesses get a 1 percentage point reduction on their flat rate percentage during their first year of VAT registration. This discount applies from the date of VAT registration up to the day before the first anniversary of registration.
Yes. You still charge customers VAT at the normal rate, usually 20%, and show it on invoices as normal. The Flat Rate Scheme only changes how much of that collected VAT you hand over to HMRC, not what you charge customers.