If you sell special items in the UK, such as energy-saving products or certain residential renovations, they may be subject to reduced VAT at 5%. Fynlo makes it simple to set up and apply!
Step 1: Add UK VAT (Reduced Rate)
Go to Settings → Income → Add New Tax
Name:
UK VAT 5%Rate:
5%(reduced rate for eligible items)Tax Account: Choose an account for tracking, e.g., Sales Tax
Click Save ✅
Step 2: Apply VAT to Your Invoices
When creating an invoice, select UK VAT 5% from the Tax dropdown for each eligible item.
Fynlo calculates the tax automatically and updates your invoice total—no manual math required!
Step 3: What Your Client Sees
Item price for each product or service
UK VAT 5% added
Total amount including tax
Pro Tips
Only apply the 5% rate to items that qualify under UK VAT rules, like energy-saving materials or certain residential renovations.
You can set UK VAT 5% as the default tax for these items to save time on invoices.
💡 Why it matters:
Your invoices are accurate, taxes are tracked properly, and your workflow stays smooth—keeping you compliant with UK VAT regulations.