VAT Scheme Comparison Calculator
Standard scheme vs Flat Rate Scheme vs staying unregistered — find the option that keeps the most cash for your business.
Estimates only – not tax advice. For planning purposes only; does not replace professional advice or official HMRC calculations. Full disclaimer
Guidance, not advice. This calculator runs the rules as published, it doesn't assess your circumstances. Your actual tax may be affected by factors it doesn't cover (allowances used elsewhere, reliefs, marriage allowance, scheme-specific adjustments). Always seek financial or tax advice from your accountant, or contact HMRC. Read our editorial scope →
Your business
Goods only — not services, fuel for cars, or capital items. Drives the limited cost trader test.
Scheme comparison
No VAT
- Net VAT to HMRC
- £0
- Net income kept
- £80,000
Standard
- Net VAT to HMRC
- £12,000
- Net income kept
- £84,000
Flat Rate
- Net VAT to HMRC
- £13,920
- Net income kept
- £82,080
How the schemes differ
No VAT: below the £90,000 compulsory threshold you can stay out altogether. You charge no VAT but can't reclaim input VAT either.
Standard scheme: charge 20% on sales, reclaim VAT on purchases, pay net to HMRC. Best when you have significant input VAT (stock, equipment, fuel, B2B services).
Flat Rate Scheme (FRS): charge 20% but pay HMRC a flat percentage of your VAT-inclusive turnover. Trade-specific rate, with a 1% first-year discount. Joining cap: £150,000 (ex VAT).
Limited cost trader (16.5%): if relevant goods spend is less than 2% of gross turnover OR less than £1,000/year, you're forced onto a 16.5% effective rate — usually wipes out the FRS advantage.
Read more in our £90,000 VAT decision guide and voluntary VAT guide.
FRS rates by trade
| Trade | Standard FRS rate | First-year rate (−1%) |
|---|---|---|
| Management consultancy | 14% | 13.0% |
| Computer repair | 10.5% | 9.5% |
| Hairdressing & beauty | 13% | 12.0% |
| Building / construction | 9.5% | 8.5% |
| Plumbing | 9.5% | 8.5% |
| Electrical services | 9.5% | 8.5% |
| Taxi / private hire | 10% | 9.0% |
| Photography | 11% | 10.0% |
| Retail food | 4% | 3.0% |
| Pubs | 6.5% | 5.5% |
| Catering / food trucks | 12.5% | 11.5% |
| IT consulting | 14.5% | 13.5% |
| Design / creative | 14.5% | 13.5% |
| Accountancy / bookkeeping | 14.5% | 13.5% |
| Cleaning services | 12% | 11.0% |
| Gardening / landscaping | 9.5% | 8.5% |
| Limited cost trader | 16.5% | 16.5% |
Rates illustrative based on HMRC VAT Notice 733. Always verify the specific trade rate before electing FRS.
Guidance only. UK VAT rules change frequently and your circumstances may differ. Verify scheme eligibility (notably the £150,000 entry cap and the limited cost trader test) with HMRC or your accountant before joining or leaving any scheme.