UK VAT Calculator
Add VAT to a net price or strip it out of a VAT-inclusive total. Preset to the UK standard rate of 20%, with 5%, 0% and custom rates a tap away. Click any result to copy it.
Adding and removing VAT - the right way
VAT is always calculated on the net figure, the price before tax. That single fact explains both directions of the calculation:
- Adding VAT (net → gross): multiply by 1.20 at the standard rate. £250 × 1.20 = £300, of which £50 is VAT.
- Removing VAT (gross → net): divide by 1.20. £300 ÷ 1.20 = £250 net.
Current UK VAT rates
| Rate | Percentage | Typical examples |
|---|---|---|
| Standard | 20% | Most goods and services - electronics, adult clothing, restaurant meals, professional services |
| Reduced | 5% | Domestic gas and electricity, children's car seats, some property renovations |
| Zero | 0% | Most food from shops, books and newspapers, children's clothes and shoes, public transport |
| Exempt | - | Insurance, financial services, education, health care, postage stamps |
The standard rate has been 20% since 4 January 2011, when it rose from 17.5%. Before that it had briefly been cut to 15% during the 2008-09 financial crisis. Zero-rated and exempt sound the same but aren't: zero-rated sales sit inside the VAT system (so a business can reclaim VAT on its related costs), while exempt sales sit outside it entirely. The full, legally current list of what falls under each rate is on GOV.UK's VAT rates guidance - worth bookmarking if you invoice across categories.
Do you need to charge VAT?
You must register for VAT once your taxable turnover passes £90,000 in any rolling 12-month window - note it's a rolling 12 months, not a tax year. Many smaller businesses register voluntarily anyway: if your customers are VAT-registered themselves, they reclaim what you charge, and registration lets you reclaim VAT on your own costs. The process and the exact rules are set out on HMRC's VAT registration pages; confirm anything borderline there or with your accountant.
You quote a client £1,200 for a project and you're VAT-registered. Your invoice shows £1,200 net, £240 VAT (20%), £1,440 total. The client pays £1,440; the £240 isn't yours - you're collecting it for HMRC and it goes on your next VAT return. If you're still deciding what to quote in the first place, our percentage calculator makes quick work of margins and markups.
Frequently asked questions
How do I add 20% VAT to a price?
Multiply the net price by 1.20. A £250 net price becomes £300 gross, of which £50 is VAT. For the 5% reduced rate multiply by 1.05 instead. Enter your amount above and press "Add VAT" to see the full breakdown.
How do I remove VAT from a price?
Divide the VAT-inclusive price by 1.20 (at the 20% rate) to get the net, then subtract the net from the gross to find the VAT. £300 ÷ 1.20 = £250 net, so £50 was VAT. Never just subtract 20% - that overstates the VAT.
What is the current rate of VAT in the UK?
The standard rate is 20% and has been since 4 January 2011. A reduced rate of 5% covers items such as domestic energy and children's car seats, and a 0% rate applies to most food, books and children's clothing.
What is the difference between net and gross?
Net is the price before VAT; gross is the price after VAT has been added. On a UK invoice at the standard rate, gross = net × 1.20.
What is the VAT registration threshold?
A business must register for VAT when its taxable turnover exceeds £90,000 in any rolling 12-month period, or when it expects to cross that figure within the next 30 days. Voluntary registration below the threshold is allowed and often sensible for B2B businesses.
How much VAT is in a £100 purchase?
If the £100 already includes VAT at 20%, the VAT element is £16.67 - one sixth of the gross - and the net is £83.33. People often guess £20, but that would only be right if £100 were the net price.