VAT Calculator

Flat Rate v Standard Rate Scheme

Our VAT calculator shows the amount of Value Added Tax you would charge or could claim back from HMRC. Use it to calculate VAT on a single item or on total sales/purchases. You can also use it to calculate whether you could save money by being on HMRC ‘s Flat Rate VAT Scheme (FRS).

VAT Calculator that also does flat rate scheme comparison

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* Disclaimer:This is only for guide purposes and only compares the two rates like for like, Even if you aren’t using Numberjuice, we will do our best to answer your questions or take our free trial

The Flat Rate Scheme simplifies VAT by allowing you to pay a percentage of your total sales (the ‘flat rate’) each quarter to HMRC. This is in contrast to the Standard Rate, which calculates your VAT return by subtracting the VAT you have paid on your own purchases, from the VAT you have charged.

To calculate Flat Rate VAT, add up your total sales including VAT for the quarter (including reduced rate, zero rate and VAT exempt sales). A percentage of that total is the amount of ‘Flat Rate’ VAT you need to pay HMRC.

Different types of businesses pay different rates, for example the VAT flat rate for advertising agencies is 14.5%, whereas the VAT flat rate for laundry or dry cleaning services is 12%. You also get a 1% reduction on Flat Rate VAT for the first 12 months after you register for VAT.

From April 1, 2017 HMRC introduced a new FRS category ‘Limited Cost Trader’. If you’re on the Flat Rate Scheme you need to check if you are a Limited Cost Trader every time you complete a VAT return.

However the VAT you charge your customers is the same (Standard, Reduced or Zero), and you can keep the difference between what you charge in VAT and what you pay HMRC.

Because VAT flat rates vary, you may or may not be better off under the Flat Rate Scheme, so we recommend you take professional advice before registering. If you are already signed up with Numberjuice, your bookkeeper will be familiar with your business and can advise you on the scheme that is best suited to you.