FilesCalcs

VAT calculator

Add VAT to a price or take it off a total at the UK rates of 20%, 5% or 0%. The net amount, VAT and gross total update as you type.

Worked out in your browser. Nothing is sent anywhere.

£
That amount is
UK VAT rate
Before VAT
VAT at 20%
Total including VAT

Example figures. Type your own amount and everything updates as you go.

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How to use the VAT calculator

  1. Type the amount. You can paste "£1,200" or write "1.2k".
  2. Choose whether that amount is before VAT or already includes VAT.
  3. Pick the rate: 20% standard, 5% reduced, 0% zero, or enter a custom rate.
  4. Read the before-VAT figure, the VAT and the total, and tap a copy button to use one.

How to add and remove UK VAT, with examples

To add VAT, multiply the net price by 1 plus the rate. At 20%, £250 x 1.2 = £300, so the VAT is £50. At 5%, £80 x 1.05 = £84, so the VAT is £4.

To remove VAT from a total, divide by the same number. £300 / 1.2 = £250. A shortcut for the VAT part at 20% is to divide the gross price by 6: £300 / 6 = £50. At 5% you divide by 21: £84 / 21 = £4.

The most common mistake is taking 20% off a VAT-inclusive price. £120 x 0.8 = £96, which is wrong. The VAT was added to £100, so £120 / 1.2 = £100 is the right answer. The error grows with the price: on £6,000 it puts you £200 out.

UK VAT rates at a glance

  • Standard rate, 20%: most goods and services.
  • Reduced rate, 5%: some items such as home energy and children's car seats.
  • Zero rate, 0%: most food, books and newspapers, and children's clothes.

Zero-rated is different from exempt. Zero-rated sales are still taxable at 0% and count towards your VAT turnover. Exempt items, such as most insurance, are outside VAT altogether. The rules for individual products have plenty of exceptions (hot takeaway food is standard-rated, for example), so check the product on GOV.UK if you are not sure.

When a business has to register for VAT

You must register if your VAT taxable turnover goes over £90,000 in any rolling 12-month period, or if you expect it to go over £90,000 in the next 30 days alone. The threshold has been £90,000 since April 2024. You can also register voluntarily below it. Once registered, you add VAT to your prices, show it on your invoices and can usually reclaim VAT on business costs. HMRC's pages on GOV.UK set out the full rules.

Questions people ask

How do I work out 20% VAT on a price?

Multiply the price before VAT by 0.2 to get the VAT, or by 1.2 to get the total. £45 before VAT has £9 of VAT and comes to £54.

How do I take VAT off a price that includes it?

Divide by 1.2 for 20% VAT or by 1.05 for 5%. £540 including 20% VAT is £450 before VAT, with £90 of VAT.

Why is removing 20% from a VAT price wrong?

VAT was calculated on the smaller, pre-VAT figure, so 20% of the total is more than the VAT actually charged. £120 less 20% gives £96, but the real pre-VAT price is £100.

What is the VAT fraction?

It is the share of a VAT-inclusive price that is VAT. At 20% it is 1/6 and at 5% it is 1/21, so £360 including 20% VAT contains £60 of VAT.

Do I charge VAT if I am not registered?

No. Only VAT-registered businesses can charge VAT. If you are below the £90,000 threshold and have not registered voluntarily, your prices and invoices should not include VAT.