UK Flat Rate vs Standard VAT Calculator
Compare simplified UK Flat Rate Scheme VAT against standard VAT with limited-cost warnings.
Enter your values to see a result.
Comparing UK VAT Flat Rate and standard accounting
The UK Flat Rate Scheme uses a percentage of VAT-inclusive turnover based on eligible business activity. Limited-cost businesses generally use 16.5%. The scheme can be simplified but may not always give the lowest VAT liability.
Worked example
Suppose gross standard-rated turnover is £120,000 and the applicable flat rate is 12%. The flat-rate payment estimate is £14,400 before special adjustments. Standard accounting instead considers output VAT and allowable input VAT.
Important assumptions and limitations
This is a simplified comparison only, assuming all turnover is subject to 20% UK VAT. Limited cost rules, exclusions, registration dates, eligibility and capital purchases can change the result. Check HMRC guidance.
How to use this tool
Enter valid input in the fields above and run the calculation or conversion. Review the displayed result, assumptions and any warnings before reusing the output. Where available, download or copy the result directly from your browser.
Frequently asked questions
Is this tool free?
Yes. It works without an account or registration.
Does the tool require a server?
The calculation runs in your browser with local JavaScript. A network connection is only needed to load the website.
Can I use the result professionally?
Check important results against a trusted source, especially for financial, legal and tax decisions. See the stated assumptions for this tool.