Self-Employed
VAT Flat Rate Scheme UK: Is It Worth It in 2026?
The VAT Flat Rate Scheme lets you pay HMRC a fixed percentage of your VAT-inclusive turnover instead of tracking VAT on every purchase. Since April 2017, low-spend service businesses are pushed onto a punitive 16.5% rate, so run the limited cost trader test before you join.
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How it works - You charge customers the normal 20% VAT, but pay HMRC a fixed percentage of your...
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VAT registration threshold - You must register for VAT once taxable turnover passes GBP 90,000 in...
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Turnover limit to join - Expected VAT taxable turnover of GBP 150,000 or less (excluding VAT) in...
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When you must leave - Total income including VAT of more than GBP 230,000 at your scheme...
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Plus 4 more in the full guide
Freedom Isn’t Free Scan to read
freedomisntfree.co.uk/guides/vat-flat-rate-scheme-uk