Precision Utility
UK VAT
Calculator
Standard Rate
20%
Reduced Rate
5%
Add or remove VAT from any amount in seconds. Choose the standard 20% rate, reduced 5% rate or zero-rated — and instantly see the net price, VAT amount and gross total. Built for UK businesses, freelancers and sole traders.
VAT Parameters
VAT Amount
£200.00
Net Amount
£1,000.00
VAT Amount
£200.00
Gross Amount
£1,200.00
VAT Rate
20%
How the VAT calculator works
Enter the amount you want to calculate VAT on. Then choose whether you want to add VAT to a net price or remove VAT from a gross price that already includes it.
Select the VAT rate that applies to your goods or services. Most items in the UK are charged at the standard 20% rate. Some products qualify for the reduced 5% rate, and certain essentials are zero-rated.
The calculator instantly shows the net amount (before VAT), the VAT itself, and the gross total (after VAT). When you choose "Add VAT", the amount you enter is treated as the net price. When you choose "Remove VAT", it's treated as the gross price.
The maths behind it is simple: to add VAT, multiply by the rate. To remove it, divide by 1 plus the rate. For 20% VAT, that means dividing by 1.20.
What you need to know about UK VAT
Value Added Tax (VAT) is a consumption tax charged on most goods and services sold in the UK. It's collected by VAT-registered businesses and paid to HMRC.
Key facts for 2025:
- Standard rate (20%) — applies to most goods and services
- Reduced rate (5%) — home energy, child car seats, smoking cessation products
- Zero rate (0%) — most food, children's clothing, books, newspapers
- Registration threshold — you must register for VAT when your taxable turnover exceeds £90,000 in any rolling 12-month period
- Flat Rate Scheme — lets small businesses (turnover under £150,000 ex. VAT) pay a fixed percentage of gross turnover instead of tracking every invoice
- VAT returns are usually filed quarterly via HMRC's Making Tax Digital service
If you're VAT-registered, you charge VAT on your sales (output tax) and can reclaim the VAT you pay on business purchases (input tax). The difference is what you pay to or reclaim from HMRC each quarter.
Frequently asked questions
What is the current UK VAT rate?
The standard UK VAT rate is 20%. A reduced rate of 5% applies to certain goods like home energy and child car seats. Some items such as most food, children's clothing and books are zero-rated at 0%.
How do I add VAT to a price?
Multiply the net amount by the VAT rate (e.g. 0.20 for 20%) to get the VAT, then add it to the net amount. For example, £100 + 20% VAT = £100 + £20 = £120 gross.
How do I remove VAT from a gross price?
Divide the gross amount by 1.20 (for 20% VAT) to get the net price. The difference is the VAT. For example, £120 / 1.20 = £100 net, so £20 is the VAT.
When do I need to register for VAT?
You must register for UK VAT when your taxable turnover exceeds £90,000 in any rolling 12-month period, or if you expect it to exceed £90,000 in the next 30 days alone. You can also register voluntarily below this threshold.
What is the VAT Flat Rate Scheme?
The Flat Rate Scheme lets small businesses pay a fixed percentage of their gross turnover as VAT instead of tracking VAT on every purchase and sale. The percentage varies by industry sector and is typically lower than 20%. You can join if your VAT-taxable turnover is under £150,000 (excluding VAT).
Can I reclaim VAT on business purchases?
Yes. If your business is VAT-registered, you can reclaim the VAT you pay on eligible business purchases (input tax) against the VAT you charge customers (output tax). You'll need valid VAT invoices as evidence.