VAT Calculator.
Add VAT or strip it out — net, VAT and gross from any figure, instantly.
Standard and reduced UK VAT rates. Whether a supply is standard, reduced, zero-rated or exempt is its own question — Everything runs in your browser — your figures never leave it. Estimates are general information, not advice: ask us about your own position.
Twenty percent, both directions
Add it on, strip it out, invoice with confidence.
VAT arithmetic is trivial right up until you do it backwards. Adding 20% to a net price is easy; extracting the VAT hiding inside a gross figure is where invoices quietly go wrong — the VAT inside £120 is £20, not £24, because you divide by six, not multiply by a fifth. This calculator does both directions at the standard 20%, reduced 5% and zero rates, and lays out net, VAT and gross so the right number goes in the right box.
The rate itself is the judgment call the calculator cannot make for you: domestic fuel and some renovations at 5%; most food, books and children's clothing zero-rated; insurance and postage exempt, which is a different thing from zero-rated in ways that matter for reclaiming input VAT. When a supply straddles categories, the answer is worth getting in writing.
And the threshold question behind it all: registration becomes compulsory when taxable turnover passes £90,000 in any rolling twelve months — not your accounting year. Approaching it deliberately, choosing the right scheme, and timing registration well is proper VAT advice, and cheaper than the penalty for noticing late.
Common questions.
How do I take VAT out of a gross amount?
For the 20% standard rate, divide the gross figure by 6 to get the VAT (or by 1.2 to get the net). £120 gross contains £20 VAT, not £24 — the VAT is 20% of the net, which is smaller than the gross. For the 5% rate, divide by 21. This backwards calculation is the single most common VAT arithmetic mistake.
When do I have to register for VAT?
When taxable turnover in any rolling twelve-month period exceeds £90,000, or when you expect to pass it in the next 30 days alone. It is a rolling test, checked monthly — not your accounting year. Register late and VAT is due on sales from the date you should have registered, whether or not you charged it.
What is the difference between zero-rated and exempt?
Zero-rated sales are VATable at 0% — they count toward the registration threshold and you can reclaim input VAT on related costs. Exempt sales (insurance, most finance, some property) are outside the reclaim system: they don't count toward the threshold, and input VAT relating to them generally cannot be recovered.
Is the Flat Rate Scheme worth it?
Sometimes. You charge customers 20% but pay HMRC a flat percentage of gross turnover and give up most input VAT reclaims. For low-cost service businesses it can save money and admin; for anyone buying significant goods, or caught by the 16.5% limited-cost-trader rate, it usually costs more. It is a calculation, not a preference — we run it for clients before recommending either way.
Keep going.
VAT, handled
Registration, the right scheme, and returns filed on time under MTD.
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VAT sorted? See what the company keeps after the other tax.
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Hovering near £90,000 turnover, or unsure of a rate? VAT is the tax where a short question prevents the expensive letter.