14.5% going to 16.5%.
Noticed looking at the HMRC test page it states “You may need to do this calculation for every VAT period” which suggests you could switch between the two rates depending on qualifying goods expenses for the quarter.
https://www.tax.service.gov.uk/check-your-vat-flat-rate/vat-return-period
Not that in an IT consultancy / freelance business it’s easy to find any qualifying goods expenses. Almost everything is ruled out unless I was selling hardware, but then I wouldn’t be a consultancy business any more.
Whole point of the flat rate was to simplify the return and you get a lower VAT rate to accommodate the typical VAT expenses. I still have expenses I pay VAT on and they are business expenses, not personal, but they’re all capital expenses, stationary, phone bills, travel, subsistence, etc. All valid business expenses, but all excluded.
Still, I’m sticking with the flat rate as the extra hassle coming off is extra time/cost to me and I still make a saving, even if it’s a tiny amount by comparison. To be fair, it’s exactly what the gov intended with this rule and my company shouldn’t really be profiting off the flat rate (though I do argue small businesses need incentives).