VAT calculator
Add VAT to a net price, or work backwards from a VAT-inclusive one — at the 20% standard rate or the 5% reduced rate.
The amount
Net · VAT · gross
The standard rate covers most goods and services; the 5% reduced rate applies to things like domestic energy and child car seats, and some items (most food, books, children's clothes) are zero-rated. Registered businesses charging VAT should weigh up the Flat Rate Scheme.
Adding and removing VAT without the classic mistake
Adding VAT is the easy direction: multiply by 1.2 for the 20% standard rate, so £100 net becomes £120 gross. Removing it is where spreadsheets quietly go wrong. The VAT inside a gross figure is not 20% of that figure. Take £120 including VAT: the tax inside it is £20, which is a sixth of the gross, and knocking 20% off £120 gives £96, a wrong answer that turns up in real invoices constantly. Divide by 1.2 instead. The two sums worth memorising: price with VAT = net × 1.2, and the VAT inside a gross figure = gross ÷ 6. For the 5% reduced rate, divide by 1.05, where the same trap takes a 21st of the gross rather than 5%.
Which rate applies
The 20% standard rate covers most goods and services. The 5% reduced rate takes in domestic energy, children's car seats and certain renovation work. Zero-rated items, most food, books, children's clothes, carry VAT at 0% but still count as taxable turnover, which matters for registration. Exempt supplies such as insurance and postage sit outside the system entirely. The registration threshold itself is £90,000 of taxable turnover in any rolling 12 months, and it's the rolling test that catches growing businesses out, since it never waits politely for your accounting year to end.
Nearby tools
Registered businesses choosing a scheme should run the flat rate vs standard VAT comparison before HMRC's simplification pitch wins by default. And if the VAT question comes from selling on the side, eBay, Etsy, a weekend trade, the side hustle tax calculator covers the income tax side of the same coins.
Common questions
How do I take VAT off a price?
Divide the VAT-inclusive price by 1.2 for the 20% rate (or 1.05 for the 5% rate) to get the net figure; the difference is the VAT. A common mistake is subtracting 20% of the gross — that removes too much, because the VAT was charged on the smaller net amount.
What are the UK VAT rates?
The standard rate is 20% and covers most goods and services. A 5% reduced rate applies to items like domestic gas and electricity and child car seats, and a 0% rate covers most food, books, newspapers and children’s clothes. Some things — such as insurance and postage stamps — are exempt rather than zero-rated.
When does a business have to register for VAT?
Registration is compulsory once taxable turnover in any rolling 12-month period passes £90,000, or if you expect to pass it in the next 30 days. You can register voluntarily below that — worth it if your customers are VAT-registered businesses who can reclaim what you charge.
These results are estimates for general information only and are not financial advice. VAT treatment depends on exactly what is being sold — check the rules for your goods or services on GOV.UK. Read the full disclaimer.