Different business sectors are required to pay different flat rates of VAT under the scheme. You’ll need to identify which rate applies to you when working out whether the Flat Rate Scheme is right for you. For example, a business charges VAT of £20,000 on total sales of £100,000. If the business pays VAT at a flat rate of 11% of turnover (including VAT), it would pay VAT of 11% x £120,000 = £13,200 under the Flat Rate Scheme. So, if the business could reclaim more than £6,800 VAT from purchases it would be better off remaining in the standard VAT scheme.