Illustrative estimate. Check the rate and scheme eligibility for your transaction. No amounts are sent by this calculator.
Enter the right turnover and percentage
Use the VAT-inclusive turnover relevant to your scheme calculation. Enter your applicable flat rate percentage, checking the HMRC sector and limited cost business rules. The tool starts at 16.5%; that is an example default, not a recommendation for your business.
Worked payment estimate
With illustrative VAT-inclusive turnover of £12,000 and a 16.5% rate, the estimate is £1,980. The remaining £10,020 is turnover less this payment only. It is not net profit: purchases, wages and other costs still have to be considered.
First-year rate adjustment
HMRC provides a one percentage point discount during the first year of VAT registration. If eligible, enter the adjusted rate yourself. For example, a qualifying 12% rate becomes 11%, not 11.88%. Check the start and end of the discount period before using it.
Compare schemes before deciding
A flat rate percentage applies to a different base from the rate on an ordinary invoice. Compare the estimated payment with your expected output VAT less recoverable input VAT under normal accounting. Joining conditions and purchase-recovery restrictions also matter; a lower percentage alone does not demonstrate a saving.
Quick answer
Can I use the result without saving an account?
Yes. Calculations run in your browser. Copy the figures into your own records; refreshing the page resets the inputs.
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Official sources
Sources checked: 2026-09-26. Check the official guidance for later changes.
Educational information and estimates. These tools do not submit VAT returns or determine the treatment of a specific transaction.