Do Florists Need to Register for VAT?
You must register for VAT when your taxable turnover exceeds the VAT registration threshold. For the 2025/26 tax year, this threshold is £90,000 over any rolling 12-month period.
Once you exceed the threshold, you have 30 days to notify HMRC. Miss this deadline and HMRC can backdate your registration and charge penalties.
Important: This is general guidance, not professional tax advice. Always consult a qualified accountant for advice specific to your circumstances.
How VAT Works for Flower Shops
The Standard Rate
VAT is charged at 20% on most goods and services in the UK. As a VAT-registered florist, you must charge VAT on your sales, reclaim VAT on your business purchases, and pay the difference to HMRC each quarter.
What Rate Applies to Flowers?
Cut flowers, bouquets, and flower arrangements are standard-rated at 20%. They are classified as ornamental products. Delivery charges are also standard-rated at 20%.
A Worked Example
Suppose you sell a bouquet for £60 including VAT:
- Net price (excluding VAT): £60 / 1.2 = £50.00
- VAT charged: £10.00
If you bought £30 of wholesale materials inclusive of VAT:
- VAT reclaimable on purchases: £30 / 6 = £5.00
- VAT liability on this sale: £10.00 - £5.00 = £5.00
The VAT Flat Rate Scheme
HMRC offers a Flat Rate Scheme (FRS) for small businesses with taxable turnover of £150,000 or less. Under the FRS, retail florists pay a flat rate of 7.5% of gross turnover.
Standard VAT accounting (quarterly):
- Sales (net): £25,000 — Output VAT: £5,000
- Purchases with VAT: £12,000 — Input VAT reclaimable: £2,000
- VAT payable: £3,000
Flat Rate Scheme (quarterly):
- Gross sales (inc VAT): £30,000
- Flat rate at 7.5%: £2,250
The FRS saves £750 per quarter in this example. However, the benefit depends on your purchase-to-sales ratio.
Making Tax Digital
All VAT-registered businesses must use MTD-compatible software to keep digital records and submit VAT returns. Popular options include Xero, QuickBooks, FreeAgent, and Sage.
Should You Register Voluntarily?
If your turnover is below £90,000, voluntary registration might make sense if you sell mainly to VAT-registered businesses, you are investing heavily in equipment, or you are growing rapidly.
Common VAT Mistakes Florists Make
- Not monitoring the threshold — track your rolling 12-month turnover monthly using a simple spreadsheet or accounting software
- Confusing turnover with profit — the threshold is based on total sales, not what you take home
- Not reclaiming everything you can — van fuel, phone bills, software subscriptions, and even the flowers you throw away are all reclaimable
- Forgetting to charge VAT on delivery — delivery charges carry the same VAT rate as the products being delivered
- Mixing personal and business purchases — keep business accounts completely separate to simplify returns and avoid HMRC queries
Setting Money Aside for VAT
Set aside roughly 10-15% of your weekly takings into a separate bank account so your quarterly bill never comes as a shock. The Tax Reserve Calculator helps you work out exactly how much to set aside each period based on your actual sales figures. Pair it with the Operating Cost Calculator to ensure your VAT obligations are built into your overall overhead planning.
Get Professional Help
Find an accountant who understands retail, ideally one with experience in floristry or hospitality, and let them handle the technical details while you focus on flowers.
