VAT Flat Rate Scheme rates

Under the Flat Rate Scheme you pay HMRC a fixed percentage of your VAT-inclusive turnover and keep the difference from the VAT you charged. GOV.UK lists the percentages below (read on 13 November 2026); you cannot reclaim VAT on purchases except capital assets over £2,000.

Type of business

Sales for the period, without VAT (£)

Limited cost business?

First year of VAT registration (1% off)

Worked example

GOV.UK’s example: a photographer bills £1,000 plus 20% VAT, £1,200 in all. The flat rate is 11%, so the payment is 11% of £1,200, which is £132.00.

Rates by type of business

Type of business	Flat rate %
Accountancy or book-keeping	14.5
Advertising	11
Agricultural services	11
Any other activity not listed elsewhere	12
Architect, civil and structural engineer or surveyor	14.5
Boarding or care of animals	12
Business services not listed elsewhere	12
Catering services including restaurants and takeaways	12.5
Computer and IT consultancy or data processing	14.5
Computer repair services	10.5
Entertainment or journalism	12.5
Estate agency or property management services	12
Farming or agriculture not listed elsewhere	6.5
Film, radio, television or video production	13
Financial services	13.5
Forestry or fishing	10.5
General building or construction services	9.5
Hairdressing or other beauty treatment services	13
Hiring or renting goods	9.5
Hotel or accommodation	10.5
Investigation or security	12
Labour-only building or construction services	14.5
Laundry or dry-cleaning services	12
Lawyer or legal services	14.5
Library, archive, museum or other cultural activity	9.5
Management consultancy	14
Manufacturing fabricated metal products	10.5
Manufacturing food	9
Manufacturing not listed elsewhere	9.5
Manufacturing yarn, textiles or clothing	9
Membership organisation	8
Mining or quarrying	10
Packaging	9
Photography	11
Post offices	5
Printing	8.5
Publishing	11
Pubs	6.5
Real estate activity not listed elsewhere	14
Repairing personal or household goods	10
Repairing vehicles	8.5
Retailing food, confectionery, tobacco, newspapers or children’s clothing	4
Retailing pharmaceuticals, medical goods, cosmetics or toiletries	8
Retailing not listed elsewhere	7.5
Retailing vehicles or fuel	6.5
Secretarial services	13
Social work	11
Sport or recreation	8.5
Transport or storage, including couriers, freight, removals and taxis	10
Travel agency	10.5
Veterinary medicine	11
Wholesaling agricultural products	8
Wholesaling food	7.5
Wholesaling not listed elsewhere	8.5

Labour-only building means materials are less than 10% of the turnover for those services; above that the business is general building. Catering, hotels and pubs had temporary lower rates until 31 March 2022; the rates here are those from 1 April 2022.

Common questions

Who can join the Flat Rate Scheme?

GOV.UK says you may be able to join if your VAT turnover is £150,000 or less, excluding VAT. You apply to HMRC.

What is a limited cost business?

GOV.UK says it is one whose goods cost less than either 2% of turnover or £1,000 a year (if that is more). It pays a higher flat rate of 16.5%.

Is there a first-year discount?

Yes, GOV.UK says you get a 1% discount if you are in your first year as a VAT-registered business.

Sources

GOV.UK, "VAT rates" (gov.uk/vat-rates), read on 13 November 2026.
GOV.UK, "VAT thresholds" (gov.uk) and "VAT Flat Rate Scheme", including "Work out your flat rate" (gov.uk), read on 13 November 2026.
HMRC, "VAT rates on different goods and services" (gov.uk), last updated 10 July 2026, read on 13 November 2026.

Rates read on 13 November 2026 from GOV.UK. VAT rules change at Budgets: check with HMRC before you rely on a figure. This site is independent and gives arithmetic, not tax advice.