VAT calculator & Flat Rate Scheme

Add or remove VAT, check if you need to register, and compare the Flat Rate Scheme.

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I want to

Price before VAT

VAT rate

Price including VAT

£1,200.00

Net (before VAT)	£1,000.00
VAT at 20%	£200.00
Gross (including VAT)	£1,200.00

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The Flat Rate Scheme at a glance

How joining, staying and leaving work — HMRC VAT Notice 733.

Step 1
Check you can join
Expected taxable turnover of £150,000 or less in the next 12 months (excluding VAT).
Step 2
Join the scheme
Apply to HMRC. Get 1% off your flat rate in your first year of VAT registration.
Step 3
Stay on it
Pay a fixed % of your VAT-inclusive turnover — until total income goes over £230,000 (including VAT).
Step 4
Leave
Tell HMRC within 30 days once you're over the limit. You can also choose to leave at any time.
Step 5
Rejoin later
After leaving, you must wait 12 months before you can rejoin.

The exception: if you go over £230,000 because of a one-off — say a single large sale — HMRC may let you stay on the scheme if it's satisfied your income in the next 12 months will be £191,500 or less.

The limits on one scale

Your turnover (Flat Rate tab): £120,000 including VAT

£90,000

VAT registration (excl VAT)

£150,000

Join limit (excl VAT)

£191,500

Exception (incl VAT)

£230,000

Must leave (incl VAT)

Your turnover Close to the leaving limit Over it — you must leave

The joining and VAT registration limits are excluding VAT; the leaving and exception limits are total income including VAT. If all your sales are standard-rated, £150,000 excluding VAT is about £180,000 including VAT.

VAT-inclusive turnover

Your flat rate is a % of all income plus the VAT on it — including exempt and zero-rated sales.

Capital purchases £2,000+

You can still reclaim VAT on a single capital purchase of £2,000 or more (including VAT).

Limited cost business: 16.5%

If your spend on goods is under 2% of turnover or under £1,000 a year. Goods exclude services, capital items, vehicles/fuel (unless transport), staff food and goods for resale. Check it every VAT return.

1% first-year discount

Knock 1% off your flat rate until the day before the first anniversary of your VAT registration.

You can't join or use the scheme if you…

✕left the scheme in the last 12 months
✕had a VAT offence, compound penalty or dishonesty penalty in the last 12 months
✕are in a VAT group or division — or were in the last 24 months
✕are closely associated with another business
✕use a margin scheme, the auctioneers' scheme or the Tour Operators' Margin Scheme
✕will buy assets covered by the Capital Goods Scheme

VAT registration basics

You must register for VAT if your taxable turnover goes over £90,000 in any rolling 12 months, or you expect it to in the next 30 days alone. You can ask to deregister if it falls below £88,000. Standard rate 20%, reduced rate 5%.

Estimates only, based on 2026/27 rates for typical situations. They are not financial advice — speak to us about your own circumstances. Rates last checked: October 2026 (GOV.UK).