How do I add VAT to a price?
Enter the price before VAT, choose Add VAT and pick a rate. At the 20% standard rate, VAT is the net price × 0.2, and the gross price is the net price × 1.2. For example, £100 plus VAT is £120.
How do I take VAT off a price?
Enter the price that already includes VAT and choose Remove VAT. The net price is the gross price ÷ 1.2 at the standard rate. For example, £120 including VAT is £100 plus £20 VAT. Taking 20% off a gross price gives the wrong answer, because VAT is 20% of the net price, not of the gross price.
What are the UK VAT rates?
- Standard rate (20%) – most goods and services.
- Reduced rate (5%) – some items, such as home energy and children's car seats.
- Zero rate (0%) – items such as most food and children's clothes. These are still VAT-taxable supplies, so you report them on your VAT return.
- Exempt – items such as insurance and some education. These are outside the VAT charge, so you cannot reclaim VAT on costs linked to them.
The rate that applies depends on what you sell. Check GOV.UK if you are unsure.
When do I need to register for VAT?
You must register if your VAT-taxable turnover goes over the registration threshold in any rolling 12 months, or if you expect it to go over in the next 30 days. You can also register voluntarily below the threshold. The threshold changes from time to time, so check the current figure on GOV.UK.
How does rounding work?
This calculator works in whole pence and rounds the VAT on each line to the nearest penny. Each line total is then added up. If your invoices show VAT for the whole invoice instead, a total can differ from this one by a penny or two. Use the same method on your invoices and your VAT return.
What is the flat rate scheme?
Under the flat rate scheme, you charge customers the normal VAT rate but pay HMRC a fixed percentage of your gross (VAT-inclusive) turnover. The percentage depends on your type of business. Turn on the flat rate option in the settings, enter your percentage and the totals show the VAT you would pay under the scheme. The scheme has eligibility rules and a different rate in your first year of VAT registration, so check GOV.UK before you use it.
Is my data uploaded anywhere?
No. Every calculation runs in your browser, so the amounts you enter never leave your device. This calculator gives a guide only and is not tax advice.