UK VAT Calculator
Easily add or remove Value Added Tax (VAT) from any amount. Updated for 2025/2026.
Ready to Calculate
Enter your income and details on the left to see a detailed breakdown of your tax liability and take-home pay.
Frequently Asked Questions
How to use this calculator
1. Enter the amount you want to calculate the VAT for.
2. Select the VAT rate (Standard 20%, Reduced 5%, or Zero 0%).
3. Choose whether you want to "Add VAT" (if your amount is exclusive of VAT) or "Remove VAT" (if your amount already includes VAT).
4. The calculator will instantly show the net amount, the VAT amount, and the gross amount.
Understanding your results
Net Amount: The price of the goods or services before VAT is added.
VAT Amount: The actual tax amount that must be paid to HMRC.
Gross Amount: The total price including VAT. This is what the final customer pays.
Standard Rate (20%): Applies to most goods and services in the UK.
Reduced Rate (5%): Applies to some goods and services, such as children's car seats and home energy.
Zero Rate (0%): Applies to most food, books, newspapers, and children's clothing.
A Complete Guide to Value Added Tax (VAT) in the UK
Value Added Tax, or VAT, is a consumption tax placed on almost all goods and services sold in the UK. If you run a business, understanding VAT is crucial, as you may need to charge it to your customers, collect it on behalf of HMRC, and reclaim it on your business purchases.
When Must I Register for VAT?
You must register your business for VAT with HMRC if your 'VAT taxable turnover' exceeds the current threshold. As of 1 April 2024, this threshold is £90,000 in a rolling 12-month period.
It is important to note that this is a rolling 12-month period, not a fixed calendar or tax year. You must check your turnover at the end of every month to see if you have exceeded the threshold in the previous 12 months. You can also choose to register voluntarily before reaching the threshold, which can be beneficial if you sell mainly to other VAT-registered businesses.
The Different VAT Rates
Not everything is taxed at the same rate. The UK currently has three rates of VAT:
- Standard Rate (20%): This is the default rate and applies to the vast majority of goods and services.
- Reduced Rate (5%): This applies to specific items, such as children's car seats, mobility aids for older people, and domestic fuel and power.
- Zero Rate (0%): This applies to essential items like most food (but not hot takeaways or restaurant meals), books, newspapers, children's clothing, and public transport. While the rate is 0%, these sales still count towards your VAT taxable turnover.
There are also 'Exempt' items, such as insurance, postage stamps, and health services. If you only sell exempt items, you cannot register for VAT.
How to Calculate VAT
Calculating VAT can sometimes be confusing, especially when trying to extract the VAT amount from a gross price.
- Adding VAT (Net to Gross): To add 20% VAT to a net amount, multiply the net amount by 1.2. (e.g., £100 net x 1.2 = £120 gross).
- Removing VAT (Gross to Net): To find the net amount from a gross price that already includes 20% VAT, divide the gross amount by 1.2. (e.g., £120 gross / 1.2 = £100 net).
- Finding the VAT Amount: To find out exactly how much of a gross price is VAT (at 20%), divide the gross amount by 6. (e.g., £120 gross / 6 = £20 VAT).
Filing VAT Returns
Once registered, you must submit a VAT Return to HMRC, usually every three months (quarterly). This return details:
- Output Tax: The total VAT you have charged your customers on sales.
- Input Tax: The total VAT you have paid on your business purchases and expenses.
If your Output Tax is higher than your Input Tax, you pay the difference to HMRC. If your Input Tax is higher, HMRC will refund the difference to you. Under the Making Tax Digital (MTD) rules, all VAT-registered businesses must keep digital records and use compatible software to submit their VAT Returns.