The
flat rate scheme saves you time by removing the need to calculate
and record output tax and input tax to calculate the net VAT
due to Customs. You simply record the VAT inclusive value
of all your business supplies in a period -including exempt
supplies. You then apply the flat rate percentage for your
trade sector to your total income and that is the VAT you
pay. A list of the flat rate percentages is shown below.
If
you are making supplies to other VAT registered businesses,
you give them a VAT invoice charging VAT at the normal rate
for the supply (not the flat rate percentage).
Whether
the scheme is beneficial will be a complex decision and should
be discussed with your George Hay adviser.
The flat rate percentages will change on 4 Janaury 2011 when the standard VAT rate increases to 20%.
| |
From
4 Jan 2011 |
From
1 Jan 2010 |
 |
Accountancy or bookkeeping |
|
14.5 |
13 |
|
Advertising |
|
11 |
10 |
|
Agricultural services |
|
11 |
10 |
|
Any other activity not listed elsewhere |
|
12 |
10.5 |
|
Architect, civil and structural engineer or surveyor |
|
14.5 |
13 |
|
Boarding or care of animals |
|
12 |
10.5 |
|
Business services that are not listed elsewhere |
|
12 |
10.5 |
|
Catering services including restaurants and takeaways |
|
12.5 |
11 |
|
Computer and IT consultancy or data processing |
|
14.5 |
13 |
|
Computer repair services |
|
10.5 |
9.5 |
|
Dealing in waste or scrap |
|
10.5 |
9.5 |
|
Entertainment or journalism |
|
12.5 |
11 |
|
Estate agency or property management services |
|
12 |
10.5 |
|
Farming or agriculture that is not listed elsewhere |
|
6.5 |
6 |
|
Film, radio, television or video production |
|
13 |
11.5 |
|
Financial services |
|
13.5 |
12 |
|
Forestry or fishing |
|
10.5 |
9.5 |
|
General building or construction services* |
|
9.5 |
8.5 |
|
Hairdressing or other beauty treatment services |
|
13 |
11.5 |
|
Hiring or renting goods |
|
9.5 |
8.5 |
|
Hotel or accommodation |
|
10.5 |
9.5 |
|
Investigation or security |
|
12 |
10.5 |
|
Labour-only building or construction services* |
|
14.5 |
13 |
|
Laundry or dry cleaning services |
|
12 |
10.5 |
|
Lawyer or legal services |
|
14.5 |
13 |
|
Library, archive, museum or other cultural activity |
|
9.5 |
8.5 |
|
Management consultancy |
|
14 |
12.5 |
|
Manufacturing that is not listed elsewhere |
|
9.5 |
8.5 |
|
Manufacturing fabricated metal products |
|
10.5 |
9.5 |
|
Manufactuirng food |
|
9 |
8 |
|
Manufacturing yarn, textiles or clothing |
|
9 |
8 |
|
Membership organisation |
|
8 |
7 |
|
Mining or quarrying |
|
10 |
9 |
|
Packaging |
|
9 |
8 |
|
Photography |
|
11 |
10 |
|
Post offices |
|
5 |
4.5 |
|
Priniting |
|
8.5 |
7.5 |
|
Publishing |
|
11 |
10 |
|
Pubs |
|
6.5 |
6 |
|
Real estate activities not listed elsewhere |
|
14 |
12.5 |
|
Repairing personal or household goods |
|
10 |
9 |
|
Repairing vehicles |
|
8.5 |
7.5 |
|
Retailing food, confectionary, tobacco, newspapers or children's clothing |
|
4 |
3.5 |
|
Retailing pharmaceuticals, medical goods, cosmetics or toiletries |
|
8 |
7 |
|
Retailing thatis not listed elsewhere |
|
7.5 |
6.5 |
|
Retailing vehicles or fuel |
|
6.5 |
6 |
|
Secretarial services |
|
13 |
11.5 |
|
Social work |
|
11 |
10 |
|
Sport or recreation |
|
8.5 |
7.5 |
|
Transport or storage, including couriers, frieght, removals and taxis |
|
10 |
9 |
|
Travel agency |
|
10.5 |
9.5 |
|
Veterinanry medicine |
|
11 |
10 |
|
Wholesaling agricultural products |
|
8 |
7 |
|
Wholesaling food |
|
7.5 |
6.5 |
|
Wholesaling that is not listed elsewhere |
|
8.5 |
7.5 |
