Flat Rate Scheme (FRS): category of business and percentage

There are a range of flat rate % that correspond to different business sectors. The FRS category and % shown has been based on the Standard Industrial Classification (SIC) code that was selected earlier as the main activity of the business.

The FRS % shown should be applied to your VAT inclusive turnover to calculate the amount of your VAT payments. You cannot reclaim VAT on purchases - it is taken into account in calculating the flat rate %.

In the first year of registration you can reduce the FRS % by a further 1%. However, you will not be entitled to use this reduction if you applied to register for VAT 12 months or more after the date you were required to do so.