Flat Rate Scheme · trade
Transport / courier / removals / taxi: 10% flat rate
Policy state · verified
Flat Rate Scheme · Transport / courier / removals / taxi: 10%
VAT Notice 733 §4.4 (trade-sector table) · Last verified 13 Jun 2026
gov.uk/guidance/flat-rate-scheme-for-small-businesses-vat-notice-733What HMRC means by this trade
Transport or storage, including couriers, freight, removals and taxis.
The flat rate for the HMRC sector “Transport or storage, including couriers, freight, removals and taxis” is 10%. You apply that percentage to your gross (VAT-inclusive) turnover to work out what you pay HMRC. VAT Notice 733
FRS vs Standard at sample turnovers
The figures below assume 4% recoverable input VAT under the standard method — adjust for your own cost base in the advisor. Positive means the Flat Rate Scheme costs you less than the standard method.
| Net turnover | FRS VAT due | Standard VAT due | FRS saving |
|---|---|---|---|
| £30,000 | £3,600 | £4,800 | +£1,200 |
| £50,000 | £6,000 | £8,000 | +£2,000 |
| £80,000 | £9,600 | £12,800 | +£3,200 |
| £120,000 | £14,400 | £19,200 | +£4,800 |
| £150,000 | £18,000 | £24,000 | +£6,000 |
Watch the limited-cost test
If your goods cost less than 2% of your turnover (or less than £1,000 a year), you must use the 16.5% limited-cost rate instead of the 10% sector rate — even though your trade is transport / courier / removals / taxi. Service businesses that buy little in the way of goods are often caught by this. The 1% first-year discount still applies on top.
Flat Rate Scheme advisor · 58 HMRC trade sectors
Your FRS percentage and the FRS-vs-Standard maths
IT & professional services · 11
Trades & construction · 10
Creative & media · 6
Beauty & personal care · 2
Retail & food · 7
Hospitality & leisure · 6
Transport & agriculture · 5
Other services · 11
Transport & agriculture
Transport / courier / removals / taxi
Transport or storage, including couriers, freight, removals and taxis.
HMRC label: Transport or storage, including couriers, freight, removals and taxis
- FRS VAT due (10% × gross £72,000)
- £7,200
- Standard VAT due (20% output − 4% input)
- £9,600
- Estimated annual saving on FRS
- +£2,400
Input VAT is an estimate you control above — your actual recoverable input VAT depends on your specific VAT-bearing costs. The Flat Rate Scheme does not let you reclaim input VAT (except on certain capital assets over £2,000).
| Net turnover | FRS due | Standard due |
|---|---|---|
| £30,000 | £3,600 | £4,800 |
| £50,000 | £6,000 | £8,000 |
| £80,000 | £9,600 | £12,800 |
| £120,000 | £14,400 | £19,200 |
| £150,000 | £18,000 | £24,000 |
Policy state · verified
Flat Rate Scheme percentages: Transport / courier / removals / taxi · 10%
VAT Notice 733 §4.4 (trade-sector table) · Last verified 13 Jun 2026
gov.uk/guidance/flat-rate-scheme-for-small-businesses-vat-notice-733Other trades
Not quite your trade? Browse all 58 HMRC sectors, or use the search in the advisor above.