Rates & Tools

Tax rates

VAT flat rate scheme percentages

Since 1 April 2017 a new rate of 16.5% applies to “limited cost traders”.
Broadly, a limited cost trader is one whose VAT-inclusive expenditure on goods is either:
  • less than 2% of its VAT-inclusive turnover in a VAT return period; or
  • greater than 2%, but less than £1,000 per annum (time apportioned for shorter return periods, e.g. £250 for a VAT quarter).
These rates will apply from 4 January 2011 until further notice.
Business category