VAT Scheme CompareFarm 67
VAT Scheme Compare · HMRC guidance reviewed 6 August 2026

HMRC sector flat rates: choose the closest main activity

Use HMRC’s current sector list and keep limited-cost status as a separate per-period test.

Decision boundary

Sector selection follows the business activity that most closely describes expected main activity. The checker accepts the rate but does not classify your trade.

Evidence to check

Compare this VAT period

Official source

HMRC VAT Notice 733: selecting a sector

General information only. HMRC decides scheme eligibility, rate and leaving dates.

Related guides

VAT Flat Rate calculator: use VAT-inclusive turnoverApply the selected HMRC rate to VAT-inclusive turnover and keep standard-accounting inputs separate.Limited cost business test: 2% and £1,000 rulesTest relevant goods against both HMRC limits for each VAT return period instead of self-classifying once.Flat Rate vs standard VAT: compare the same periodCompare cash paid to HMRC without treating the lower estimate as proof that a scheme is suitable or available.

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