Tools · For drivers and operators
VAT position calculator
Courier turnover crosses the £90,000 threshold deceptively fast. This shows how close you are, and what registering would actually do to your income on the standard and flat rate schemes.
Where you stand
Headroom below the £90,000 registration threshold
£15,000.00
Standard scheme: annual effect of registering
£2,833.33
Flat rate scheme at 10%: annual effect
£6,000.00
Input VAT currently locked in your costs
£2,833.33
A positive figure means registering under that scheme would leave you better off across the year than staying unregistered; a negative figure means it would cost you. Once registered, you can deregister only if taxable turnover falls below £88,000.
Quick VAT conversion
If £100.00 is the net (before VAT)
+ £20.00 VAT = £120.00
If £100.00 is the gross (including VAT)
− £16.67 VAT = £83.33
How this is calculated
Figures verified against GOV.UK and VAT Notice 733 in July 2026: registration is required when taxable turnover for the last 12 months exceeds £90,000; deregistration is possible below £88,000; the standard VAT rate is 20%; the flat rate for transport or storage, including couriers, is 10%, with a 1% discount in the first year of registration and a 16.5% rate for limited cost businesses; the flat rate scheme is open up to £150,000 turnover (excluding VAT) and must be left at £230,000 (including VAT).
Standard scheme effect = input VAT reclaimed on your costs, minus VAT absorbed on income where it cannot be added on top. Where your client is VAT registered (delivery networks and most businesses), the 20% you add is reclaimed by them and costs neither side anything; where the payer cannot reclaim, the calculation assumes your headline price stays the same and the VAT comes out of it.
Flat rate effect = VAT-inclusive turnover × (1 − flat rate) − current turnover, with no reclaim of input VAT (capital goods over £2,000 are an exception not modelled here). The limited cost test treats vehicle and fuel costs as relevant goods, which VAT Notice 733 permits for transport businesses using their own or a leased vehicle.
The calculator compares scheme mechanics on the figures you enter. It does not model every circumstance (partial exemption, capital goods, mixed activities), and VAT registration decisions are worth confirming with an accountant.
This calculator provides general information based on the figures you enter. It is not financial, tax or professional advice, and results depend entirely on your inputs. No account is required: when you use this tool without signing in, the information you enter remains in your browser and is not saved by Wentworth Ridge. If you sign in and choose to save, the selected information is securely transmitted to and stored in your account.
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