Tax relief · England, Wales, Scotland, Northern Ireland

VAT Agricultural Flat Rate Scheme

Open all year Other

Instead of registering for VAT, smaller farms can add a 4% flat rate addition to sales to VAT-registered customers and keep it, with no VAT returns.

From: HMRC
How much: Keep 4% on top of qualifying sales to VAT-registered buyers. You can't reclaim VAT on purchases.
Who can apply: Farmers with farming turnover under £150,000 a year (you must leave above £230,000) and non-farming turnover under the VAT threshold.

What you’ll need

Worth it mainly if you buy few VAT-able inputs. The gov.uk notice was last changed in 2021, so check thresholds are still current.

Growth Guarantee Scheme (government-backed business lending) OpenBritish Business Bank, through accredited lendersThe government guarantees part of a loan, overdraft, asset finance or invoice finance from an accredited lender, which can help a farm business borrow when it might not otherwise get finance.
Scottish Broadband Voucher Scheme OpenScottish Government (R100 programme) · Closes 20 November 2026A voucher towards getting a faster broadband connection installed at a home or business with slow broadband and no faster connection planned.
Sustainable Agriculture Loan Scheme OpenDevelopment Bank of Wales, for the Welsh GovernmentLow-interest loans for on-farm renewable energy, energy efficiency and storage, slurry and nutrient management, and farm infrastructure and equipment.
Workplace Charging Scheme (EV chargepoints) OpenOffice for Zero Emission Vehicles (OZEV), run by DVLA · Closes 31 March 2027A voucher towards buying and fitting electric vehicle chargepoints for staff or farm fleet vehicles. You get a voucher code and give it to an authorised installer, who claims the money.
40% first-year allowance Open all yearHMRCDeduct 40% of the cost of new main-rate plant and machinery from profits in the first year, with the rest claimed over later years.
Annual Investment Allowance (AIA) Open all yearHMRCDeduct the full cost of most machinery and equipment (tractors, kit, many fixtures) from your profits in the year you buy it, so you pay less tax.

Checked against the official pages on 29 October 2026. Sources: 1, 2. Always read the official page before you apply.