How to Use This Table
Find the category that best describes your business. Apply this percentage to your VAT-inclusive turnover to calculate the VAT you owe HMRC. In your first year of VAT registration, subtract 1% from the percentage.[2]
Complete Percentage List
| Business Type | % |
|---|---|
| Accountancy or book-keeping | 14.5 |
| Advertising | 11 |
| Agricultural services | 11 |
| Any other activity not listed | 12 |
| Architect, civil and structural engineer or surveyor | 14.5 |
| Boarding or care of animals | 12 |
| Business services not listed elsewhere | 12 |
| Catering services incl. restaurants and takeaways | 12.5 |
| Computer and IT consultancy or data processing | 14.5 |
| Computer repair services | 10.5 |
| Dealing in waste or scrap | 10.5 |
| Entertainment or journalism | 12.5 |
| Estate agency or property management | 12 |
| Farming or agriculture not listed elsewhere | 6.5 |
| Film, radio, TV or video production | 13 |
| Financial services | 13.5 |
| Forestry or fishing | 10.5 |
| General building or construction services* | 9.5 |
| Hairdressing or beauty treatment | 13 |
| Hiring or renting of goods | 9.5 |
| Hotel or accommodation | 10.5 |
| Investigation or security | 12 |
| Labour-only building or construction services* | 14.5 |
| Laundry or dry-cleaning | 12 |
| Lawyer or legal services | 14.5 |
| Library, archive, museum or other cultural activity | 9.5 |
| Management consultancy | 14 |
| Manufacturing fabricated metal products | 10.5 |
| Manufacturing food | 9 |
| Manufacturing not listed elsewhere | 9.5 |
| Membership organisation | 8 |
| Mining or quarrying | 10 |
| Packaging | 9 |
| Photography | 11 |
| Post offices | 5 |
| Printing | 8.5 |
| Publishing | 11 |
| Pubs | 6.5 |
| Real estate activity not listed elsewhere | 14 |
| Repairing personal or household goods | 10 |
| Repairing vehicles | 8.5 |
| Retailing food, confectionery, tobacco, newspapers or children’s clothing | 4 |
| Retailing pharmaceuticals, medical goods, cosmetics or toiletries | 8 |
| Retailing not listed elsewhere | 7.5 |
| Retailing vehicles or fuel | 6.5 |
| Secretarial services | 13 |
| Social work | 11 |
| Sport or recreation | 8.5 |
| Telecommunications | 10.5 |
| Transport or storage, incl. couriers, freight, removals, taxis | 10 |
| Travel agency | 10.5 |
| Veterinary medicine | 11 |
| Wholesale of agricultural products | 8 |
| Wholesale of food | 7.5 |
| Wholesale not listed elsewhere | 8.5 |
* Construction services are largely subject to the domestic reverse charge, which affects how the Flat Rate Scheme applies.
Limited Cost Businesses
If you spend less than 2% of your VAT-inclusive turnover on goods (or less than £1,000 per year), you must use 16.5% regardless of your trade category.[3]
Frequently Asked Questions
How do I find my Flat Rate Scheme percentage?
Find the trade category that best describes your business in HMRC’s list and apply that percentage to your VAT-inclusive turnover. In your first year of VAT registration, you can reduce the percentage by 1%.
What is the Flat Rate Scheme percentage for IT consultants?
Computer and IT consultancy or data processing has a flat rate percentage of 14.5%.
What percentage do limited cost businesses use?
If you spend less than 2% of your VAT-inclusive turnover on goods (or less than £1,000 per year), you must use the limited cost rate of 16.5%, regardless of your trade category.
Do I get a discount on the Flat Rate percentage in my first year?
Yes. In your first year of VAT registration, you can subtract 1% from your normal flat rate percentage.
Further Reading
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Sources
- Flat Rate VAT percentages — GOV.UK
- VAT Flat Rate Scheme — GOV.UK
- Limited cost businesses — GOV.UK