Flat Rate or Standard?

The Flat Rate Scheme is simpler, and for some trades it is dearer. It depends almost entirely on how much you spend on materials. Put your own numbers in.

A year of sales, excluding VAT

VAT you'd reclaim in a yearOn materials, fuel, tools, the van, phone, everything with VAT on it.

A year of materials, including VATGoods only, not services. This decides whether HMRC calls you a limited cost business.

Your flat rate percentage

Another trade's rate%

First year as a VAT-registered business?HMRC takes 1% off your rate for the first twelve months.

Flat Rate leaves you £3,740.00 better off a year.

Sales including VAT: £108,000.00
Standard: VAT you'd hand over: £14,000.00
Flat Rate at 9.5%: £10,260.00

On the Flat Rate Scheme you keep charging 20%, hand over 9.5% of your VAT-inclusive sales, and reclaim nothing except one-off capital buys of £2,000 or more.

Reverse charge sales sit outside the Flat Rate Scheme, and you can't reclaim VAT on materials for them. You can only join if your sales are £150,000 or less a year before VAT.

Your app can do this every time, without you

This is the same sum InstaQuote runs on a real invoice. It splits labour from materials on its own, takes the CIS off, handles the reverse charge wording, and keeps the VAT return in order behind the scenes. You do the job, we do everything else.

Try it free

The other free ones

CIS deduction calculator

Materials out, 20% or 30% off the labour, and what actually lands in the bank.

VAT reverse charge checker

Six questions, and the wording your invoice needs if it applies.

A guide, not tax advice. Rules and rates from GOV.UK, checked 22 September 2026. If a job is unusual or a lot of money rests on it, ask your accountant or HMRC.