Skip links

What is VAT Flat Rate Scheme FRS?

Variable VAT Rate

Suitable for some

For Turnover of less than £230,000

 Payroll service Trust Pilot Reviews

4.8 Star Reviews

Get Started
Harkia Accountants Video

How does VAT flat rate VAT works?

The Flat Rate Scheme is designed to simplify VAT accounting for small businesses. Instead of reclaiming VAT on individual purchases, you pay a fixed percentage (based on your industry) of your gross turnover to HMRC.

Although you cannot reclaim VAT on purchases, the scheme allows you to retain the difference between what you charge your customers and what you pay to HMRC.

See our pricing

Who can use Flat Rate Scheme?

Business with less input VAT can ideally benefit from this.

To join,

  • The turnover must be less than £150,000
  • Must Leave the scheme if turnover exceeds £230,000.
  • Must carefully calculate VAT payable

Pros and Cons of using VAT Flat Rate Scheme


  • Fixed percentage of VAT is payable
  • Depending on business industry, lower VAT rates might be available. find here
  • Simpler record keeping
  • VAT could be claim on some assets valued £2,000 or more


  • Can’t claim VAT on purchases
  • VAT thresholds can limit the business to use it.

See our pricing
What is VAT flat rate scheme

4.8 Rating

5.0 Rating

4.9 Rating

Free Harkia Online Portal
Harkia Login

Why us.

We are Experienced Accountants providing accounting, tax, payroll, VAT services for over a 15 Years.

We have worked with many software & cloud platforms are we are best placed to advice and integrate system that works for you and you can afford.

Chartered Accountants

Licensed by world’s top accountancy bodies. ICAEW & ACCA firm.

Expert Staff

For Accounts production – VAT – Tax Returns – Tax Advisory


Tax and Business advisory to save Tax and future planning.

Deadline Management

Our effective system ensures that none of your deadlines are missed thus avoiding penalties and stress.


Save £1,000’s in cost

Get one of our accounting package!

Service Lines
Positive Feedback
Since 2012

Our Accreditations & Certifications

Harkia Accountants Xero Accredited Advisors

Harkia Chartered Certified Accountants -ACCA Firm

Harkia Chartered Accountants -ICAEW regulated firm


Contact us

Harkia Accountants London

    This website uses cookies to improve your web experience.