All calculators

VAT Flat Rate Calculator

Compare VAT payments under the standard and flat-rate schemes for the same period of standard-rated sales.

Go to the calculator

Compare the same sales period

For 2026/27, a limited cost business uses 16.5% of VAT-inclusive turnover. Otherwise use the rate for your business sector. The eligible first-year reduction is one percentage point and runs from VAT registration, not from joining the scheme.

Assumes all entered sales carry 20% VAT and no input VAT is reclaimed under the flat-rate scheme. Excludes capital-goods exceptions, reverse charges and mixed-rate sales. A smaller VAT payment is not a complete profit comparison.

Confirm your limited cost status for each period using the HMRC flat-rate rules and sector rates. Check scheme eligibility separately; this calculator does not decide whether you can join or remain.

Tax year: 6 April 2026 to 5 April 2027. See our 2026/27 tax rates and sources. This is an estimate under the assumptions above, not a tax return or individual advice.

Calculations run in your browser. Your entries are not stored or sent to us.