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VAT Flat Rate Scheme Calculator

You can calculate the amount of tax you pay by multiplying your VAT flat rate by your ‘ VAT inclusive turnover’.

The Flat Rate Scheme for VAT is available to businesses who have an annual VAT taxable turnover of less than £150,000.

Using the Flat Rate Scheme you pay VAT as a fixed percentage of your VAT inclusive turnover. The actual percentage you use depends on your type of business.

The Flat Rate Scheme can save time and smooth cash flow. Advantages are:

  • You don’t have to record the VAT that you charge on every sale and purchase meaning you spend less time on your accounting, and more time on your business.
  • In your first year of VAT registration, you get a one per cent reduction in your flat rate percentage until the day before the first anniversary you become VAT registered.
  • You no longer have to work out what VAT on purchases you can and can’t reclaim.
  • With less chance of mistakes, you have fewer worries about getting your VAT right.
  • You always know what percentage of your takings you will have to pay to HMRC.

The calculator is to be used as a guide and should not be construed as financial advice.

Use this calculator to find out if you are likely to benefit from the VAT Flat Rate Scheme.

How much will you pay under the flat rate scheme

How much VAT do you pay under the present system

The VAT Flat Rate Scheme is designed to simplify the completion of VAT returns for small businesses but for those who qualify it can also reduce VAT liabilities.

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