Flat Rate Scheme

Optional flat rate scheme for small businesses

(HMCE Notice 733) Registration Allowed subject to certain exemptions, if expected turnover in the next 12 months is no more than £150,000 taxable supplies, once on the scheme the trader is not required to leave the scheme until his annual income exceeds £225,000.

Calculate VAT payable by multiplying the flat rate percentage for the relevant trade sector by total income.

N.B. Supplies to other Vat registered businesses are invoiced at the normal rate for the supply

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Category of business % from 04/01/2018
Accountacy or bookkeeping 14.5
Advertising 11.0
Agricultural services 11.0
All other activities not listed elsewhere 12.0
Architect, civil and structural engineer or surveyor 14.5
Boarding or care of animals 12.0
Business services that are not listed elsewhere 12.0
Catering services including restaurants and takeaways 12.5
Computer and IT consultancy or data processing 14.5
Computer repair services 10.5
Dealing in waste scrap 10.5
Entertainment or journalism 12.5
Estate agency or property management services 12.0
Farming or agriculture that is not listed elsewhere 6.5
Film, radio, television or video production 13.0
Financial services 13.5
Forestry or fishing 10.5
General building or construction services 9.5
Hairdressing or other beauty treatment services 13.0
Hiring or renting goods 9.5
Hotel or accommodation 10.5
Investigation or security 12.0
Labour-only building or construction services * 14.5
Laundry or dry-cleaning services 12.0
Lawyer or legal services 14.5
Library, archive, museum or other cultural activity 9.5
Management consulting 14.0
Manufacturing fabricated metal products 10.5
Manufacturing food 9.0
Manufacturing that is not listed elsewhere 9.5
Manufacturing yarn, textiles or clothing 9.0
Membership organisation 8.0
Mining or quarrying 10.0
Packaging 9.0
Photography 11.0
Post offices 5.0
Printing 8.5
Publishing 11.0
Pubs 6.5
Real estate activity not listed elsewhere 14.0
Repairing personal or household goods 10.0
Repairing vehicles  8.5
Retailing food, confectionary, tobacco, newspapers or children’s clothing  4.0
Retailing pharmaceuticals, medical goods, cosmetics or toiletries  8.0
Retailing that is not listed elsewhere  7.5
Retailing vehicles or fuel  6.5
Secretarial services 13.0
Social work 11.0
Sport or recreation 8.5
Transport or storage, including couriers, freight, removals and taxis 10.0
Travel agency 10.5
Veterinary medicine 11.0
Wholesaling agricultural products  8.0
Wholesaling food  7.5
Wholesaling that is not listed elsewhere  8.5
* ‘Labour-only building or construction services’ means building or construction services where the value of materials supplied is less than 10% of relevant turnover from such services; any other building or construction services are ‘general building or construction services’.
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