Free tool
VAT calculator UK, add or remove VAT instantly
Work out VAT at the standard 20 percent rate, the reduced 5 percent rate or any custom rate. Shows net, VAT and gross in pounds, ready to drop straight onto an HMRC compliant invoice.
| Rate | Applies to |
|---|---|
| 20 % — Standard rate | Most goods and services |
| 5 % — Reduced rate | Domestic fuel and power, energy saving materials, children's car seats |
| 0 % — Zero rate | Most food, books, newspapers, children's clothing, public transport |
- Adding VAT: gross = net x (1 + rate / 100). At 20 percent, 100 pounds net becomes 120 pounds gross.
- Removing VAT: net = gross / (1 + rate / 100). At 20 percent, divide the gross by 1.2, and the remainder is the VAT element.
How do I remove 20 percent VAT from a gross price?
Divide the gross amount by 1.2 to get the net figure, then subtract it from the gross to find the VAT. A 240 pound gross price is 200 pounds net plus 40 pounds VAT.
What is the VAT registration threshold?
Registration is required once taxable turnover passes 90,000 pounds in any rolling 12 month period, or if you expect to pass it in the next 30 days. Voluntary registration is allowed below that.
Which items are zero rated rather than exempt?
Zero rated supplies such as most food, books and children's clothing carry VAT at 0 percent and count towards taxable turnover. Exempt supplies such as insurance do not.
How does the VAT Flat Rate Scheme change the maths?
You still charge customers 20 percent, but pay HMRC a flat percentage of gross turnover based on your trade sector, and generally cannot reclaim input VAT.
Is the calculator free?
Yes. It is free, needs no sign up and handles any custom rate, including reverse charge lines that show no VAT amount.