UK VAT Calculator
Add UK VAT at HMRC's current rates — 20% standard, 5% reduced, or zero — or strip VAT from a gross total to find the net. Enter any amount and see the full breakdown: net (ex-VAT), VAT amount, and gross (inc-VAT). Accurate for UK invoices, expenses, and VAT return preparation.
Enter a price and get the full VAT breakdown — net, VAT amount, and gross total — instantly.
Enter the price before VAT — the gross total will be calculated.
Most UK goods & services: 20%. Domestic fuel, children's car seats: 5%. Food, books, children's clothing: 0%.
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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
Adding VAT — B2B invoice:
A marketing agency quotes a client £4,500 net for a campaign. The invoice must show the VAT-inclusive total.
VAT = £4,500 × 20% = £900.00
Invoice total = £4,500 + £900 = £5,400.00
Removing VAT — retail receipt:
A business expense receipt shows £84.00 including 20% VAT. What is the net for bookkeeping?
Net = £84.00 ÷ 1.20 = £70.00
VAT = £84.00 − £70.00 = £14.00
Reduced rate — domestic energy:
A quarterly gas bill of £230 includes 5% VAT. The net charge is:
Net = £230 ÷ 1.05 = £219.05 • 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
Choose 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
Enter the amount
Type the price in pounds. The label shows which type you are entering.
- 3
Select the VAT rate
UK standard is 20%. Choose 5% for reduced rate goods, 0% for zero-rated, or enter a custom rate for non-UK VAT.
- 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
Related by Workflow
Related by Region
UK VAT: Current HMRC Rates
| Rate | % | Applies to |
|---|---|---|
| Standard rate | 20% | Most goods and services — applies unless a lower or zero rate specifically qualifies |
| Reduced rate | 5% | Domestic fuel & power, children's car seats, mobility aids, energy-saving materials, women's sanitary products |
| Zero rate | 0% | Most food, children's clothing & shoes, books & newspapers, most prescription medicines, public transport, new residential buildings |
| Exempt | N/A | Financial services, insurance, education (eligible bodies), health & welfare, residential lettings — not included in VAT returns |
Rates correct for 2026/27. Always verify with HMRC's VAT rate guidance before filing a return.
UK VAT Registration
Mandatory registration threshold: Businesses must register for VAT when their taxable turnover exceeds £90,000 in any rolling 12-month period (2026/27). The threshold has been £90,000 since April 2024.
Voluntary registration: Businesses below the threshold can register voluntarily — useful for reclaiming input VAT on purchases and for appearing more credible to B2B customers.
MTD for VAT: All VAT-registered businesses must file digitally under Making Tax Digital (MTD). VAT returns are submitted quarterly (or monthly on request) through MTD-compatible software.
VAT number format: UK VAT numbers follow the format GB XXX XXXX XX (9 digits). Post-Brexit, Northern Ireland businesses use the XI prefix for intra-EU trade under the Northern Ireland Protocol.
Who uses this calculator
Freelancers & consultants
Calculating the VAT-inclusive total to quote or invoice a client. Adding 20% to a net day rate to show the invoice total.
Finance & bookkeeping
Extracting the net amount from a VAT-inclusive supplier invoice for expense reconciliation and VAT return preparation.
Ecommerce sellers
Pricing products inclusive of VAT for UK consumers while maintaining accurate net revenue figures for accounting.
Property & energy
Applying the 5% reduced rate to energy bills, qualifying renovations, or energy-saving material installations.
Common calculations
What is £100 plus 20% UK VAT?
£100 × 1.20 = £120 gross. VAT amount: £20. Enter £100 net in the calculator above, select 20%, and click Add VAT for an instant result.
How do I remove UK VAT from £120?
£120 ÷ 1.20 = £100 net. VAT: £20. Do not subtract 20% directly — that gives £96, which is wrong. The reverse formula always divides by (1 + rate). Use the calculator above in "Remove VAT" mode.
What is the difference between 20% and 5% UK VAT?
20% is the standard rate — applies to most goods and services. 5% is the reduced rate — applies to domestic fuel and power, children's car seats, and energy-saving materials. Example: £200 at 5% = £210 gross (VAT: £10) vs £200 at 20% = £240 gross (VAT: £40).
What is the difference between zero-rated and exempt in the UK?
Zero-rated (0%) goods are within the VAT system — businesses can reclaim input VAT on related purchases. Exempt goods are outside the VAT system entirely — no input VAT can be reclaimed on costs related to exempt supplies. Most food is zero-rated; insurance and financial services are exempt.
After calculating UK VAT, when is the invoice due?
UK VAT invoices must be issued within 30 days of the taxable supply. For the payment due date, use the Invoice Due Date Calculator — enter the invoice date and select Net 30, Net 60, or your agreed payment terms.
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