VAT explained

The VAT Flat Rate Scheme, explained for drivers

No jargon and no numbers pulled out of the air. Here's what it actually is, and how we work out whether it fits your driving.

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The basics

Common questions

What is the Flat Rate Scheme?

It's a simpler way of working out VAT. Instead of adding up the VAT on every single thing you buy, you work from your takings using one set percentage. Which percentage applies, and whether it suits you at all, depends on your own work.

Does it suit every driver?

No. For some drivers it's simpler and better. For others it isn't. That's why we look at your earnings and your costs before we say anything.

Do I have to be VAT registered?

The scheme only applies once you're registered for VAT. Registering is a real decision with real consequences, so we go through it with you on the call rather than pushing you into it.

What does it mean for my records?

You still need to keep your takings and your costs. We keep those records for you and file the returns on time, so it's one less thing on your shift.

Can I change my mind later?

There are rules about joining and leaving. We explain them to you in plain words before anything is filed.

This page explains how the scheme works in general. It isn't advice about your own situation — that comes on the call, once we've seen your numbers.

Before the call

What we need from you

  • Your weekly or monthly earnings summaries from each app you drive for.
  • What the car costs you: rental or finance, insurance, fuel or charging, repairs.
  • Your National Insurance number and your UTR number if you already have one.
  • Your private hire licence details.
  • Any HMRC letters about VAT — a photo is fine.

Photos from your phone are fine. If something's missing, book anyway and we'll sort it on the call.

Choose your time

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Where do you drive?

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