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Accounter

VAT Flat Rate Scheme calculator

Work out flat-rate VAT from your VAT-inclusive turnover and business type, with the 1% first-year discount and the limited cost business test (16.5% if goods are under 2% of turnover or under £1,000 a year).

  • Free, no sign-up for the result
  • Sources on GOV.UK

Rates last checked 15 October 2026 against GOV.UK

Flat-rate VAT due is £8,700.00: 14.5% of £60,000.00 VAT-inclusive turnover. You are not a limited cost business, so your business-type rate applies.

For a full year, or the period you are testing.

Used for the limited cost business test.

VAT you would pay on the standard scheme, to compare.

Result

Limited cost business: no. Goods are 8.33% of turnover and at least £1,000.

Business-type rate
14.5%
Rate applied
14.5%
Flat-rate VAT due
£8,700.00

Rates for the 2026/27 tax year from GOV.UK. Check HMRC guidance for your circumstances.

How flat-rate VAT works

  • You pay a fixed percentage of your VAT-inclusive turnover. The percentage depends on your business type.
  • In the first year after you register for VAT you take 1 percentage point off the rate.
  • A limited cost business pays 16.5% whatever its type. You are one if your spend on goods is under 2% of your VAT-inclusive turnover, or under £1,000 a year.
  • This calculator tests a full year. If your period is shorter than a year, pro-rate the £1,000 limit yourself or check the GOV.UK page.

For the limited cost test, goods means relevant goods used only for your business, such as stationery, stock for a shop or hair products for a salon. They do not include services, capital items, food or drink for you or your staff, vehicle costs including fuel (unless you are in the transport sector), promotional items or gifts, or goods you resell or hire out unless that is your main business. See VAT Notice 733, section 4.6 for the full rules. To compare with standard VAT, enter what you would pay under normal VAT accounting for the same period.

To join the scheme see GOV.UK: VAT Flat Rate Scheme. To add or remove VAT at 20%, 5% or 0% on a single amount, use the VAT calculator.

* ‘Labour-only building or construction services’ means building services where the value of the materials supplied is less than 10% of the turnover for those services. If more than this amount, the business is classed as ‘General building or construction services’.

Source: GOV.UK: VAT Flat Rate Scheme, how much you pay. Rates last checked 15/10/2026. Pub, catering and hotel rates before 1 April 2022 are not offered in the list.