UK VAT 20% Calculator

Add 20% UK standard rate VAT to any net price, or remove it from a gross amount. The calculator shows the net, VAT amount, and gross total. Use 'Add VAT' mode to add VAT to a net price; use 'Remove VAT' mode to extract VAT from a gross price.

Open VAT calculator

20% VAT quick reference

Add VAT formula

Net × 1.20

Remove VAT formula

Gross ÷ 1.20

VAT amount

Gross − Net

Add or remove UK VAT at 20%, 5%, or zero rate — instantly shows net, VAT amount, and gross total.

B2B invoicingExpense receiptsFreelance quotesBookkeepingVAT returns
Quick examples: £100 + 20% = £120 • £165 + 20% = £198 • £4,500 + 20% = £5,400
£

After calculating, copy the result into your workflow instead of searching for the calculator again.

Workflow-ready after calculation

Calculate first, then reuse the result

After you calculate, UtilityPilot can turn the result into a clean note you can paste into your SOP, spreadsheet, CRM, Slack, Notion, checklist or email.

Plain-English result — paste into any tool

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For Notion, docs or wikis

Share the tool without your values

No sign-up · No stored inputs · Copied text does not include your entered values

Formula

Add VAT: Gross = Net × (1 + Rate ÷ 100)\nRemove VAT: Net = Gross ÷ (1 + Rate ÷ 100)

At 20%: Net × 1.20 = Gross; Gross ÷ 1.20 = Net. At 5%: Net × 1.05 = Gross; Gross ÷ 1.05 = Net. The VAT amount is always the difference between gross and net.

Worked Example

What is 100 plus VAT?

£100 net × 20% = £20.00 VAT → £120.00 gross

What is 165 plus VAT?

£165 net × 20% = £33.00 VAT → £198.00 gross

Adding VAT — B2B invoice:

A marketing agency quotes a client £4,500 net. The invoice must show the VAT-inclusive total.

£4,500 × 20% = £900.00 VAT → £5,400.00 gross

Removing VAT — retail receipt:

A business receipt shows £84.00 including 20% VAT. What is the net?

£84 ÷ 1.20 = £70.00 net • VAT = £14.00

Reduced rate (5%) — domestic energy:

A quarterly gas bill of £230 includes 5% VAT.

£230 ÷ 1.05 = £219.05 net • VAT (5%) = £10.95

Common Mistakes

  • Subtracting 20% to remove VAT. £120 − 20% = £96, not £100. The correct method is £120 ÷ 1.20 = £100.
  • Adding VAT twice. If a price is already VAT-inclusive, do not add VAT again. Use "Remove VAT" to verify first.
  • Applying the wrong rate. Some goods qualify for the 5% reduced rate (domestic fuel, children's car seats) or 0% (most food, books).

Guide

How to Use

  1. 1

    Select Add or Remove VAT

    "Add VAT" for a net price that needs a gross total. "Remove VAT" to extract the net from a VAT-inclusive price.

  2. 2

    Enter the amount

    Type the price in pounds. The label shows which type you are entering.

  3. 3

    Select the VAT rate

    UK standard is 20%. Choose 5% for reduced rate goods, 0% for zero-rated, or enter a custom rate.

  4. 4

    Review all three figures

    Net, VAT amount, and gross are shown together. Copy them for invoices or records.

Next Steps

What to do next

FAQ

Frequently Asked Questions

UK VAT rates at a glance

Standard rate

20%

Most goods and services, professional services, electronics, clothing (adult)

Reduced rate

5%

Home energy, children's car seats, mobility aids, certain renovation works

Zero rate

0%

Most food, children's clothes, books, newspapers, prescribed medicines

VAT registration threshold for UK businesses is £90,000 turnover (2024/25). Always verify current thresholds and rates with HMRC.

Save this in your team workflow

Bookmark this page for your accounts and sales teams so you do not need to search again. Use the Copy result button to paste the net/VAT/gross breakdown directly into your invoice template, spreadsheet, or expense claim.