VAT Flat Rate Scheme – Business Sectors

The flat rate percentage to be used for VAT accounting by each business is set by HMRC and it depends on the type of business you are in. The rates vary from 2% to 11.5% depending on the business sector you are in.

The table below lists the flat rate scheme percentage rates applicable to businesses in different sectors:

	Business Sector	Applicable flat rate
A	Accountancy or bookkeeping	11.5
	Advertising	8.5
	Agricultural services	7
	Any other services not listed elsewhere	9
	Architect, civil and structural engineer or surveyor	11
B	Boarding or care of animals	9.5
	Business services that are not listed elsewhere	9.5
C	Catering services including restaurants and takeaways	10.5
	Computer and IT consultancy or data processing	11.5
	Computer repair services	10
D	Dealing in waste or scrap	8.5
E	Entertainment or journalism	9.5
	Estate agency or property management services	9.5
F	Farming or agricultural that is not listed elsewhere	5.5
	Film, radio, television or video production	9.5
	Financial services	10.5
	Forestry or fishing	8
G	General building or construction services*	7.5
H	Hairdressing or other beauty treatment services	10.5
	Hiring or renting goods	7.5
	Hotel or accommodation	8.5
I	Investigation or security	9
L	Labour only building or construction services*	11.5
	Laundry or dry cleaning services	9.5
	Lawyer or legal services	12
	Library, archive, museum or other cultural activity	7.5
M	Management consultancy	11
	Manufacturing that is not listed elsewhere	7.5
	Manufacturing fabricated metal products	8.5
	Manufacturing food	7
	Manufacturing yarn, textiles or clothing	7.5
	Membership organization	5.5
	Mining or quarrying	8
P	Packaging	7.5
	Photography	8.5
	Post offices	2
	Printing	6.5
	Publishing	8.5
	Pubs	5.5
R	Real estate activity not listed elsewhere	11
	Repairing personal or household goods	7.5
	Repairing vehicles	6.5
	Retailing food, confectionery, tobacco, newspapers or children’s clothing	2
	Retailing pharmaceuticals, medical goods, cosmetics or toiletries	6
	Retailing that is not listed elsewhere	5.5
	Retailing vehicles or fuel	5.5
S	Secretarial services	9.5
	Social work	8
	Sport or recreation	6
T	Transport or storage, including couriers, freight, removals and taxis	8
	Travel agency	8
V	Veterinary medicine	8
W	Wholesaling agricultural products	5.5
	Wholesaling food	5
	Wholesaling that is not listed elsewhere	6

Labour only building or construction services means building or construction services where the materials costs supplied is less than 10% of relevant turnover from such services, any other building or construction services are general building or construction services.

If you have any question on the VAT flat rate percentage, feel free to contact our accountants.

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Flat Rate Scheme – New Percentage Rates

Business Sector

Applicable flat rate