Rates in force
| Rate | Percentage | Common examples |
|---|---|---|
| Standard | 20% | Most goods and services — including most professional freelance services |
| Reduced | 5% | Domestic fuel and power, children's car seats, some energy-saving materials |
| Zero | 0% | Most food, books, newspapers, children's clothing, most public transport |
| Exempt | N/A (outside VAT) | Some financial services, insurance, education, health services |
| Outside scope | N/A | Services to overseas business customers, salary, dividends |
What freelance services typically fall into
- Consulting, design, development, writing, marketing: Standard rate (20%) when supplied to UK customers
- Services to overseas business customers: Generally outside the scope of UK VAT
- Digital services to EU consumers: Subject to EU VAT via OSS scheme (post-Brexit rules)
- Training courses: Standard rate for private commercial training; some educational provision is exempt
Reverse charge (services)
Where a UK VAT-registered business receives services from an overseas supplier, the reverse charge applies — the recipient accounts for VAT on both sides (output and input) rather than the supplier charging it. See HMRC VAT Notice 741A for detailed rules.