UK VAT Calculator
Add VAT to a price or remove it from a VAT-inclusive total. Works with the 20% standard rate, the 5% reduced rate, zero rate and the Flat Rate Scheme.
Result
- Net (excl. VAT)
- £0.00
- VAT at 20%
- £0.00
- Gross (incl. VAT)
- £0.00
Estimates only, not tax advice. Read the disclaimer. Figures last checked against gov.uk on .
How it works
VAT (Value Added Tax) is a tax added to most goods and services sold by VAT-registered businesses in the UK. If you are registered, you add VAT to your prices, collect it from your customers and pass it on to HMRC, usually every quarter. This calculator handles the two sums you need most: adding VAT to a net price and taking VAT out of a gross price.
Adding VAT
Choose Add VAT and enter the amount before VAT. The calculator multiplies it by the VAT rate to find the VAT, then adds the two together. At the 20% standard rate, that is the same as multiplying the net amount by 1.2. Use this when you quote a price to a client or prepare an invoice.
Removing VAT
Choose Remove VAT and enter the total including VAT. The calculator divides the total by 1 plus the rate (1.2 at 20%) to find the net amount. The VAT is the difference. This is sometimes called a reverse VAT calculation, and it is the right way to find the VAT on a receipt. A common mistake is to take 20% off the gross figure, which understates the net price and overstates the VAT.
Choosing a rate
Most sales use the standard rate of 20%. Some goods and services use the reduced rate of 5% or the zero rate of 0%. If you need a different rate, for example to check an invoice from another country, choose Custom and type it in. The current rates are listed on gov.uk.
Flat Rate Scheme mode
The Flat Rate Scheme is a simpler way for small businesses to account for VAT. You still charge customers VAT at the normal rate, but you pay HMRC a fixed percentage of your VAT-inclusive turnover instead of the difference between the VAT you charge and the VAT you pay on purchases. Tick I use the Flat Rate Scheme and enter the rate for your business type. The calculator shows what you pay HMRC and how much of the VAT you charged you keep. In your first year of VAT registration you get a 1% discount, and limited cost businesses pay 16.5%.
Every figure is rounded to the nearest penny. Nothing you type is sent anywhere: the sums run in your browser.
Worked example
Adding VAT to a quote
A web designer quotes £1,500.00 for a new website. At 20%, the VAT is £1,500.00 x 20% = £300.00, so the client pays £1,800.00.
Removing VAT from a receipt
A receipt for a laptop shows £840.00 including VAT. The net price is £840.00 / 1.2 = £700.00, and the VAT is £840.00 - £700.00 = £140.00.
Flat Rate Scheme
A consultant on a 14.5% flat rate invoices £2,000.00 plus VAT, so the client pays £2,400.00, including £400.00 of VAT. The consultant pays HMRC 14.5% of £2,400.00 = £348.00 and keeps £52.00. (14.5% is an example; check the rate for your business type on gov.uk.)
Frequently asked questions
How do I add 20% VAT to a price?
Multiply the price excluding VAT by 1.2. For example, £100 x 1.2 = £120, so the VAT is £20. Our calculator does this for you and rounds to the nearest penny.
How do I remove VAT from a price?
Divide the VAT-inclusive price by 1.2 to get the net price, then subtract it from the gross to find the VAT. For example, £120 / 1.2 = £100 net, so the VAT is £20. Do not simply take 20% off the gross amount: that gives the wrong answer.
What are the current UK VAT rates?
The standard rate is 20% and applies to most goods and services. The reduced rate is 5%, for things like home energy and children's car seats. The zero rate is 0%, for things like most food and children's clothes. Some items are exempt from VAT altogether.
Do sole traders charge VAT?
Only if they are registered for VAT. Being a sole trader does not change the rules: you must register once your taxable turnover goes over £90,000 in any 12-month period, and you can register voluntarily below that. If you are not registered, you must not add VAT to your prices or invoices.
When do I have to register for VAT?
You must register if your taxable turnover for the last 12 months goes over £90,000, or if you expect it to go over that amount in the next 30 days alone. You can also register voluntarily below the threshold.
How does the Flat Rate Scheme work?
You still charge your customers VAT at the normal rate, but instead of working out the difference between VAT charged and VAT paid on purchases, you pay HMRC a fixed percentage of your VAT-inclusive turnover. The percentage depends on your type of business. You can usually join if your turnover is £150,000 or less, excluding VAT.
What is a limited cost business?
Under the Flat Rate Scheme, you are a limited cost business if the goods you buy cost less than 2% of your turnover, or less than £1,000 a year. Limited cost businesses pay a flat rate of 16.5%, which often leaves little or no saving.