Which VAT scheme is cheapest for you? Standard vs Flat Rate vs Margin

DashVue’s VAT Scheme Comparator takes your last 12 months of real sales, eBay fees and costs and runs them through all three common UK VAT schemes side by side, so you can see which one leaves you with the lowest net VAT bill before you ask your accountant to make it official.

What it compares

The comparator works out your net VAT position under each of the following schemes, using the actual figures already in your DashVue account rather than estimates:

• Standard VAT accounting: VAT charged on your sales minus VAT you can reclaim on business costs and fees.
• Flat Rate Scheme (FRS): a fixed percentage of your VAT-inclusive turnover, using the flat rate you set for your trade sector, with no separate reclaim on most purchases.
• Margin Scheme: VAT calculated only on the difference between what you paid for an item and what you sold it for, which is most relevant if you buy and resell used or second-hand stock.

Because all three are calculated from the same underlying 12 months of sales, fees and costs, you get a like-for-like comparison rather than three separate guesses.

How to see your comparison

1. Go to Settings and mark your account as VAT registered. The comparator is hidden until this is set, since none of the three calculations are meaningful for a non-registered seller.
2. If you want to see the Flat Rate Scheme figure, also enter your FRS percentage in Settings. This is the rate HMRC has assigned to your trade sector, not a number DashVue can work out for you.
3. Open the VAT Scheme Comparator on the Tax page. It automatically pulls the last 12 months of sales, fees and costs already recorded in your account.
4. Compare the three net VAT figures. The scheme with the lowest number is the one that would currently cost you the least, based on your trading pattern over that period.

Things to keep in mind

This tool is a comparison of schemes based on your recent trading, not a recommendation or a substitute for advice from an accountant. Whichever scheme looks cheapest today can change as your sales mix, costs, or eBay fees change, so it is worth revisiting the comparison periodically rather than treating one result as permanent. Switching VAT schemes with HMRC has its own rules and notice periods, and margin scheme eligibility depends on how you source your stock, so use the comparator to inform that conversation rather than to make the switch yourself.

See the related articles below for more on VAT and tax reporting.