You keep £128 of the £12,800 VAT you charge
VAT Flat Rate Scheme Checker
Check whether the flat rate scheme is worth joining. Spend under 2 per cent of turnover on goods and your rate is forced to 16.5 per cent.
VAT Flat Rate Scheme Checker
The flat rate percentage applies to your VAT-inclusive turnover, so 16.5 per cent of gross is 19.8 per cent of net. That leaves almost no room against standard VAT.
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Three things worth knowing
The 16.5 per cent limited cost rate applies where goods are under two per cent of turnover, or over two per cent but under £1,000 a year. Services, software and travel are not goods.
The percentage is charged on VAT-inclusive turnover, which is the part that catches people. Sixteen and a half per cent of gross is 19.8 per cent of net.
The scheme was designed to save paperwork rather than money. Since the limited cost rate arrived it rarely does either.
FAQs
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We provide bookkeeping, VAT returns, payroll, tax filings, annual accounts, and advisory services — tailored to freelancers, SMEs, and ecommerce businesses.
Yes. Every client works with a named accountant who knows your business inside out. You’ll never deal with call centres — just direct, personal support.
We’re certified partners with Xero and QuickBooks. Our digital-first approach means you’ll always have real-time access to your financial data.
We offer fixed monthly packages with no hidden fees. Pricing depends on your business size and the level of support you need — but you’ll always know exactly what you’re paying for.
Absolutely. We handle VAT, corporation tax, self-assessments, and payroll tax. We also manage HMRC correspondence on your behalf to ensure you never miss a deadline.
No. While many of our clients are London-based, we also support businesses across the UK and ecommerce sellers worldwide through our cloud-based systems.
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