UK VAT Calculator
Let a UK user instantly add VAT to a net amount or extract (remove) VAT from a VAT-inclusive gross amount, at the standard 20%, reduced 5%, zero 0% or a custom rate, showing the net, the VAT, and the gross.
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Worked example
Example 1: Adding 20% VAT to a net price
You quote a client a net fee of £1,000 and need to add standard-rate VAT.
- VAT = £1,000 x 0.20 = £200.00
- Gross (invoice total) = £1,000 x 1.20 = £1,200.00
Example 2: Removing 20% VAT from a gross price
A supplier receipt shows £1,200 including VAT and you want the net cost and the reclaimable VAT.
- Net = £1,200 / 1.20 = £1,000.00
- VAT = £1,200 - £1,000 = £200.00 (or £1,200 x 1/6 = £200.00)
Example 3: Reduced 5% rate
A domestic fuel bill is £210 including 5% VAT.
- Net = £210 / 1.05 = £200.00
- VAT = £210 - £200 = £10.00 (or £210 x 1/21)
How this UK VAT calculator works
VAT (Value Added Tax) is a consumption tax charged on most goods and services sold in the UK. This calculator handles the two calculations businesses and shoppers need most: adding VAT to a net price and removing (extracting) VAT from a price that already includes it.
Adding VAT
When you have a net, pre-tax figure and want the total a customer pays, you multiply by one plus the rate. At the 20% standard rate the shortcut is simply your net price times 1.20. So a £50 net item becomes £60 gross, of which £10 is VAT. The reduced rate uses 1.05 and the zero rate leaves the price unchanged.
Removing VAT
Removing VAT is the reverse and the step most people get wrong. You cannot just take 20% off the gross price - that gives the wrong answer because the 20% was calculated on the smaller net figure, not the total. Instead you divide the gross by 1.20. For a £60 inclusive price the net is £60 / 1.20 = £50, and the VAT is £60 - £50 = £10. A handy check: at 20% the VAT is always exactly one sixth of the gross price, so £60 x 1/6 = £10.
The calculator lets you switch the rate between 20%, 5% and 0%, or type a custom percentage for historic rates (such as the old 17.5%) or for modelling. Enter your amount, choose add or remove, and it returns the net, the VAT and the gross together so you can drop the numbers straight onto an invoice or expense claim.
UK VAT rates in 2025/26
There are three UK VAT rates, and choosing the right one matters because HMRC holds the seller responsible for charging the correct amount.
- Standard rate - 20%: the default for most goods and services, from professional fees and electronics to hot takeaway food and adult clothing. The standard rate has been 20% since 4 January 2011.
- Reduced rate - 5%: applies to a defined list including domestic gas and electricity, children's car seats, mobility aids for older people and certain energy-saving materials.
- Zero rate - 0%: covers most food, books, newspapers, children's clothes and footwear, and public transport. Zero-rated is not the same as exempt - zero-rated sales still count as taxable supplies, so they go on your VAT return and let you reclaim input VAT.
A separate category, exempt (for example insurance, most financial services, and postage stamps), sits outside VAT entirely and does not go through this calculator. If you are unsure which rate applies to a specific product, check the official gov.uk list of VAT rates on different goods and services rather than guessing - the difference between zero-rated and exempt in particular changes what input VAT you can recover.
This tool defaults to 20% because it is by far the most common, but you can switch rates in one click or enter a custom figure for edge cases and older transactions.
VAT registration threshold and the £90,000 rule
You do not charge VAT at all until your business is VAT-registered. Registration becomes compulsory once your VAT-taxable turnover exceeds £90,000. This threshold has applied since 1 April 2024 and is measured two ways: on a rolling 12-month basis (looking back at any consecutive 12 months, not just your accounting year) and on a forward look (if you expect to breach £90,000 in the next 30 days alone).
Once you cross the rolling threshold you must register within 30 days of the end of the month in which you went over. There is also a deregistration threshold of £88,000 - if your taxable turnover falls below this, you can apply to leave the scheme. The gap between the two figures stops businesses hovering around the line from having to register and deregister repeatedly.
You can also register voluntarily below £90,000. This is common for B2B businesses because it lets you reclaim the VAT on your purchases and equipment, and it can make a young company look more established. The trade-off is added admin and, if you sell to consumers, effectively higher prices unless you absorb the VAT.
Once registered you must charge VAT (the add VAT side of this calculator), submit returns - usually quarterly under Making Tax Digital - and can reclaim VAT on eligible business costs (the remove VAT side helps you pull the reclaimable VAT out of gross receipts).
The VAT Flat Rate Scheme explained
The Flat Rate Scheme (FRS) is a simplification aimed at smaller businesses. Instead of adding up the VAT on every sale and subtracting the VAT on every purchase, you charge your customers the normal 20% but pay HMRC a single fixed percentage of your gross (VAT-inclusive) turnover. The flat percentage depends on your trade sector, and in your first year of VAT registration you get a 1% discount off that rate.
You can join the scheme if your VAT-taxable turnover is £150,000 or less (excluding VAT) in the next 12 months. You must leave once your total income exceeds £230,000 including VAT, or on the anniversary of joining if HMRC expects you to breach the limit.
One important catch is the limited cost business rule. If your spending on goods is very low (below 2% of turnover, or below £1,000 a year), you must use a flat rate of 16.5%, which usually wipes out any benefit - so the scheme rarely suits labour-only or service businesses with few costs.
This calculator does not compute your FRS liability directly, because that depends on your sector percentage. But it is useful alongside the scheme: use add VAT to work out the 20% you charge customers, then apply your flat rate to the gross total to estimate what you owe HMRC. If you are weighing FRS against standard VAT accounting, compare the flat-rate payment with the net VAT (output minus input) you would pay normally before deciding.
Frequently asked questions
How do I remove 20% VAT from a price?
Divide the VAT-inclusive (gross) price by 1.20 to get the net price, then subtract to find the VAT. For example, £120 / 1.20 = £100 net, so the VAT is £20. Do not simply take 20% off the gross - that gives £96 and is wrong. A quick check at the 20% rate: the VAT is always one sixth of the gross, so £120 x 1/6 = £20.
How do I add VAT to a net price?
Multiply the net amount by 1 plus the rate. At the standard 20% rate, multiply by 1.20, so £200 net becomes £240 gross with £40 of VAT. For the reduced 5% rate multiply by 1.05, and at 0% the price is unchanged.
What is the UK VAT rate in 2025/26?
The standard rate is 20% and applies to most goods and services. There is a reduced rate of 5% (for example domestic fuel and children's car seats) and a zero rate of 0% (most food, books and children's clothes). The 20% standard rate has been in place since January 2011.
When do I have to register for VAT?
You must register once your VAT-taxable turnover goes over £90,000 in any rolling 12-month period, or if you expect to exceed £90,000 in the next 30 days alone. The deregistration threshold is £88,000. You can also register voluntarily below £90,000 to reclaim VAT on your purchases.
Why can't I just subtract 20% to remove VAT?
Because the 20% VAT was originally calculated on the smaller net figure, not on the gross total. Taking 20% off the gross removes too much. On £120 gross, subtracting 20% gives £96, but the correct net is £120 / 1.20 = £100. Always divide by 1.20 (or multiply the gross by 1/6 to find the VAT).
What is the VAT Flat Rate Scheme threshold?
You can join the Flat Rate Scheme if your VAT-taxable turnover is £150,000 or less (excluding VAT). You must leave once total income exceeds £230,000 including VAT. Limited cost businesses with very low goods spending must use a 16.5% flat rate, which usually removes any saving.