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.
Concise Accountancy – Making VAT administration simple for small businesses
