• HMRC Admin 50
  • Joined: 21/06/2017 15:34:03
  • Messages: 1618
  • Offline
  • View profile
  • Send message

VAT Flat Rate Scheme

03/07/2018 16:03:47
Using the Flat Rate Scheme you pay VAT as a fixed percentage of your VAT-inclusive turnover.

The actual percentage you use will depend on your type of business.

You can use the Flat Rate Scheme if:

  • Your business is registered for VAT and

  • You expect your VAT taxable turnover to be £150,000 or less, excluding VAT, in the next 12 months.

  • Benefits of using Flat Rate Scheme:

  • You won’t need to keep detailed records of sales and invoices, so you will spend less time record keeping.

  • If you’re in your first year of VAT registration, you’ll get a one percent reduction to your flat rate percentage which runs for the first 12 months following your VAT registration date.

  • There are fewer rules to follow and more certainty.

  • It may not be for you if:

  • You regularly receive a VAT repayment under standard VAT.

  • You make a lot of zero-rated or exempt sales.

  • You buy a lot of standard rated items.

  • You can join the scheme when you register online for VAT. If you’ve already registered for VAT you can join using form VAT600FRS.

    Use the link below to find out more from GOV.UK:

    Flat Rate Scheme

    You can also join our live webinar: VAT Flat Rate Scheme and take a look at our online guide: VAT - How VAT works.


    Re:VAT Flat Rate Scheme

    30/07/2018 13:28:04
    Hi I have signed up for the flat rate scheme by mistake can i change back to the normal way of paying VAT online or do i have to contact HMRC direct

    VAT Flat Rate Scheme

    30/07/2018 18:07:12
    Hi angelabibby2000, thanks for your question.

    We have asked our VAT Technical experts and they have advised full details of how to leave the scheme are set out in VAT Notice 733 Section 12

    Hope this helps and thanks again for your question.

    This message was edited 1 time. Last update was at 07/08/2018 10:25:50


    VAT Flat Rate Scheme

    12/08/2019 06:43:55
    Hello, I signed up for the first year Flat rate scheme and it was showing as such in my VAT certificate. However on the new website, the VAT certificate does not show any Flat rate scheme. Also so far this year I have paid the full 20% VAT using the MTD but how will I get a refund ? It is all very confusing

    Re:VAT Flat Rate Scheme

    12/08/2019 11:20:32

    The VAT certificate would not normally show if a business is on a specific accounting scheme.

    The business should have made note in their business records if they have applied to use the Flat Rate scheme and should only begin operating it once they have confirmation from HMRC that they have been accepted on to the scheme.

    If you are on the scheme and have not been paying the reduced rate of VAT to HMRC then you will need to complete an error correction disclosure to reclaim any overpaid VAT.

    Please refer to the following link for guidance on how the Flat Rate Scheme operates:

    VAT Notice 733: Flat Rate Scheme for small businesses

    If you believe you are due to reclaim VAT please use the following form:

    Notification of errors in VAT Returns

    Please also refer to section 4.6 of the following link for information on how to account for sales under the flat rate scheme when on MTD:

    Digital record-keeping