new Tax & Pay

UK VAT Calculator

Instantly add VAT to a net price or remove VAT from a gross price at the standard 20% rate, reduced 5% rate, zero rate, or any custom percentage. Supports multiple VAT schemes including Flat Rate, Cash Accounting, and Reverse Charge for construction.

Enter an amount

Standard VAT applies to most goods and services.

£

Calculations happen locally in your browser. Your inputs are not sent to a server.

Gross amount (including VAT)
£120.00
£100.00 net + 20% VAT

Links contain your calculator inputs, not your result or any personal information.

⚠️ Disclaimer: This calculator is an estimate for general information. VAT treatment depends on the goods or services, customer, and transaction. Check current HMRC guidance or ask a qualified adviser.

How to use the UK VAT Calculator

Calculations happen locally in your browser. Your inputs are not sent to a server.

1

Choose a calculation mode

Select Add VAT for a pre-VAT price or Remove VAT for a VAT-inclusive price.

2

Select a VAT scheme

Choose Standard VAT, Flat Rate Scheme, Cash Accounting, or Reverse Charge depending on your business situation.

3

Select the VAT rate

Use the standard 20%, reduced 5%, zero 0%, or enter a custom rate that applies to your goods or services.

4

Choose rounding

Select how to round the final amounts: nearest penny, 5p, 10p, or no rounding for full precision.

5

Enter amount and quantity

Enter the amount in pounds and quantity if calculating for multiple items. Results update as you type.

6

Review the breakdown

See the net amount, VAT, gross total, and scheme-specific details. For Flat Rate Scheme, compare standard vs flat rate payable.

7

Share or export your calculation

Use Copy link to share your inputs, Share to send via social apps, Print for a PDF, or Download to save as a text file.

Frequently Asked Questions

What is the current UK VAT rate?

The standard UK VAT rate is 20%. A reduced rate of 5% applies to specific goods like children's car seats and domestic energy. A zero rate of 0% applies to most food, children's clothing, and books.

How do I remove VAT from a gross price?

Divide the gross price by (1 + VAT rate). For example, to remove 20% VAT from £120: £120 ÷ 1.20 = £100 net. The VAT amount is £20.

Is VAT included in displayed prices?

In the UK, prices displayed to consumers must include VAT. Business-to-business prices may be shown excluding VAT.

What is the VAT registration threshold?

The UK VAT registration threshold is £90,000 (as of April 2024). Businesses with taxable turnover above this amount must register for VAT. The deregistration threshold is £88,000.

What is the Flat Rate Scheme?

The Flat Rate Scheme simplifies VAT for small businesses with taxable turnover below £150,000. You pay HMRC a fixed percentage of your gross turnover based on your business sector, rather than calculating VAT on each transaction. You cannot reclaim input VAT on purchases (except capital goods over £2,000).

When does the reverse charge apply?

The domestic reverse charge applies to standard and reduced rate supplies of building and construction services between VAT-registered businesses under the Construction Industry Scheme (CIS). The customer, not the supplier, accounts for the VAT on their VAT return.

What is Cash Accounting?

Cash Accounting means you account for VAT when you receive payment from customers and when you pay suppliers, rather than when invoices are issued. This can help with cash flow. You can use this scheme if your taxable turnover is £1.35 million or less.

How often do I need to submit a VAT return?

Most businesses submit VAT returns quarterly (every 3 months). You can also opt for monthly returns if you prefer, or join the Annual Accounting Scheme and submit one return per year.

What is the difference between zero-rated and exempt?

Zero-rated goods (like most food and children's clothing) are taxed at 0%, and you can still reclaim VAT on related purchases. Exempt supplies (like insurance, education, and health services) are not subject to VAT at all, and you cannot reclaim VAT on related costs.

What are the penalties for late VAT filing?

From January 2023, HMRC charges a £200 penalty for late VAT returns under the new points-based penalty system. You accumulate points for each late submission, and a £200 penalty is charged when you reach the threshold (2 points for quarterly returns). Late payment penalties also apply.

Can freelancers and contractors use this calculator?

Yes. Freelancers and contractors can use this calculator to add VAT to their invoices or remove VAT from client quotes. If you're in the Flat Rate Scheme, select that option and enter your agreed flat rate percentage.

What is Making Tax Digital (MTD)?

Making Tax Digital requires VAT-registered businesses to keep digital records and submit VAT returns using compatible software. From April 2022, all VAT-registered businesses must follow MTD rules, regardless of turnover.