VAT Calculator
Calculation Summary
VAT Registration Threshold Checker
Monitor if your rolling 12-month taxable sales require you to legally register for VAT in the UK.
Registration Not Required
Your turnover of £75,000 is safely below the HMRC registration threshold of £90,000. You can continue operating without registering or opt for voluntary registration.
HMRC Flat Rate Scheme (FRS) Simulator
Compare standard VAT accounting against the Flat Rate Scheme to see which structure maximizes your tax-retained earnings.
Comparison Analysis
UK VAT Compliance & FRS Rules
What is the Flat Rate Scheme?
The Flat Rate Scheme is designed for small businesses (turnover under £150,000 excluding VAT). Instead of tracking and reclaiming input VAT on every single purchase, you pay a fixed percentage of your VAT-inclusive sales to HMRC. You keep the difference between the 20% charged to customers and your flat rate percentage.
What is a "Limited Cost Trader"?
If your business spends less than 2% of its turnover (or under £1,000/year) on relevant goods, you are classified as a Limited Cost Trader. This requires you to pay a high flat rate of 16.5%, which almost always makes the Flat Rate Scheme less beneficial than standard VAT accounting.
Can FRS traders reclaim input VAT?
Generally, no. Under FRS, you cannot reclaim input VAT on daily business expenses. The only exception is capital assets (like machinery or IT hardware) costing £2,000 or more on a single invoice.
Voluntary VAT Registration Benefits
If your company sells to other VAT-registered businesses, registering voluntarily below the £90,000 threshold allows you to reclaim input VAT on setup expenses while appearing established. However, if you sell to consumers, registering voluntarily may make you less competitive because you must add 20% to your retail prices.
Explore Our Suite of Tools
Browse our collection of verification, corporate compliance, tax planning, and property calculators.