Updated for 2026/27 Tax Year
VAT Flat Rate Scheme Calculator
Calculate your VAT liability under the Flat Rate Scheme. Compare with standard VAT to see if it benefits your business.
Calculate Flat Rate VAT
Enter your gross turnover (including VAT) and business type
Results
Flat Rate Applied
14.5%
VAT Due to HMRC
£14500.00
Standard VAT Would Be
£16666.67
Potential Saving
£2166.67
About the Flat Rate Scheme
The VAT Flat Rate Scheme is a simplified method of accounting for VAT. Instead of calculating VAT on each transaction, you pay a fixed percentage of your gross turnover.
Eligibility
- • VAT taxable turnover of £150,000 or less
- • Must leave if turnover exceeds £230,000
Limited Cost Trader
- • Goods cost less than 2% of turnover
- • Or less than £1,000 per year
- • Must use 16.5% flat rate
Related Calculators
First Year Discount
New VAT-registered businesses get a 1% discount on their flat rate percentage for the first year.