VAT Flat Rate Scheme (UK)

The VAT Flat Rate Scheme lets an eligible business calculate VAT payable using the applicable flat-rate percentage of relevant VAT-inclusive turnover, rather than the ordinary output-tax-minus-input-tax computation. The percentage depends on the relevant business category and applicable rules; participants generally cannot separately recover input VAT, subject to specific exceptions. Eligibility, first-year adjustments, limited-cost rules and particular transactions must be checked for the relevant assessment period.