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Flat-rate VAT = VAT-inclusive turnover × your flat rate %. The standard figure is output VAT only and ignores input VAT you could reclaim.
How to use it
Enter your VAT-inclusive turnover for the period and the flat rate percentage for your sector. The calculator shows the VAT you'd hand over under the Flat Rate Scheme, alongside a rough standard-scheme figure for comparison.
The Flat Rate Scheme trades simplicity for the ability to reclaim VAT on purchases. It tends to suit businesses with few costs; if you buy a lot of standard-rated goods and services, the standard scheme's reclaim usually wins. Treat this as a first-pass comparison.
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Frequently asked questions
Where do I find my flat rate percentage?
HMRC publishes a rate for each business type — commonly between roughly 4% and 16.5%. 'Limited cost' businesses use 16.5%. Check the current list for your sector before relying on the figure.
Why is the standard comparison approximate?
Because it only counts the VAT you charge, not the VAT you could reclaim on purchases under the standard scheme. Your real standard-scheme bill would be lower by whatever input VAT you recover, so weigh your typical costs in.
Is this a quote?
No — it's a free illustration. Your actual Credicorp offer depends on an assessment of your company.
Related reading
Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.