VAT Calculator

Add or remove VAT from any amount. UK standard rate 20%, reduced rate 5%, or enter a custom rate.

UK VAT Rates 2025/26: Standard rate 20% · Reduced rate 5% · Zero rate 0%. Some goods and services are exempt or outside scope.
Add VAT (Net → Gross)
Remove VAT (Gross → Net)
Net Amount£0.00
VAT Amount£0.00
Gross Amount£0.00

VAT Breakdown

ItemAmountRateDetail

Enter an amount above to see your VAT calculation.

VAT Calculator UK 2025/26

Use our free VAT Calculator to instantly add VAT to a net price or remove VAT from a gross amount. Whether you’re invoicing customers, checking supplier quotes, or reconciling accounts, this tool calculates the VAT portion and final amount for any UK VAT rate.

How to Use This Calculator

  1. Choose your mode: Click “Add VAT” if you have a net price and want to find the gross, or “Remove VAT” if you have a gross price and want to strip out the tax
  2. Enter the amount: Type the figure you want to calculate from
  3. Select the VAT rate: Choose 20% (standard), 5% (reduced), 0% (zero), or enter a custom rate
  4. See your results: The net, VAT, and gross amounts update instantly in the result cards and breakdown table

Current UK VAT Rates 2025/26

There are three main VAT rates in the UK, each applying to different categories of goods and services:

Rate Applies To
20% Standard Most goods and services — electronics, clothing, furniture, professional fees, restaurant meals, subscriptions
5% Reduced Home energy (gas, electricity), children’s car seats, mobility aids for over-60s, smoking cessation products, sanitary products
0% Zero-rated Most food (unprepared), books (printed), children’s clothing/shoes, prescription medicines, public transport
Exempt Insurance, finance/credit, education, healthcare, postal services, betting/lottery tickets

Important distinction: Zero-rated goods are technically subject to VAT, but the rate is 0% — so no tax is added. Exempt goods are outside the VAT system entirely. The practical difference matters for VAT-registered businesses: you can reclaim VAT on costs related to zero-rated sales, but not on costs related to exempt sales.

VAT Calculation Formula

Adding VAT to a net price:

Gross = Net × (1 + Rate/100)
VAT = Gross − Net = Net × (Rate/100)

Removing VAT from a gross price:

Net = Gross ÷ (1 + Rate/100)
VAT = Gross − Net = Gross × (Rate/(100 + Rate))

Worked Examples

Adding 20% VAT to a £1,000 invoice

Net amount: £1,000. VAT at 20% = £1,000 × 0.20 = £200. Gross (what the customer pays): £1,200. The £200 VAT must be paid to HMRC on your VAT return.

Removing 20% VAT from a £240 receipt

Gross amount: £240. Net = £240 ÷ 1.20 = £200. VAT = £240 − £200 = £40. So £40 of the £240 total is VAT. If you’re VAT-registered and this is a business expense, you can reclaim £40.

Adding 5% VAT to £500 of home energy

Net: £500. VAT at 5% = £500 × 0.05 = £25. Gross bill: £525. Domestic gas and electricity are charged at the reduced 5% rate rather than the standard 20%.

VAT Registration Thresholds

If your business’s turnover exceeds certain thresholds, you must register for VAT. For 2025/26:

Threshold Amount (2025/26) Meaning
Registration £90,000 Must register if your VAT taxable turnover exceeds this over 12 months
Deregistration £88,000 Can cancel registration if turnover falls below this

You can also voluntarily register for VAT even if you’re below the threshold. This may be beneficial if your customers are VAT-registered businesses (who can reclaim the VAT) or if you want to reclaim VAT on your own purchases.

Making Tax Digital for VAT

All VAT-registered businesses must comply with Making Tax Digital (MTD) for VAT. This requires keeping digital records and submitting VAT returns using compatible software. The deadline for filing your VAT return online and paying any VAT due is usually one month and seven days after the end of your accounting period.

Most businesses submit quarterly, but you can choose monthly if you regularly reclaim VAT (e.g., businesses with zero-rated sales). An annual accounting scheme is also available for smaller VAT-registered businesses with turnover up to £1.35 million.

Frequently Asked Questions

What is the current UK VAT rate?

The standard VAT rate is 20% and has been since 4 January 2011. There is also a reduced rate of 5% for certain goods like domestic energy and a zero rate (0%) for essential items like most food and children’s clothing.

How do I calculate VAT backwards from a gross amount?

To find the VAT portion of a gross price, divide by (1 + VAT rate) to get the net, then subtract from the gross. For example, if the gross is £240 at 20%: net = £240 ÷ 1.20 = £200. VAT = £240 − £200 = £40. You can also multiply by the fraction Rate/(100+Rate): at 20%, that’s 20/120 = 0.1667. £240 × 0.1667 ≈ £40.

Is food charged at 20% or 0% VAT?

Most unprepared food sold in supermarkets is zero-rated. However, prepared food for immediate consumption (restaurant meals, hot takeaway food, pasties/sausage rolls sold hot) is standard-rated at 20%. Crisps, confectionery, soft drinks, and ice cream are also standard-rated. The distinction between “hot food” and “cold food” has many nuances — if in doubt, check HMRC’s VAT Notice 701/14.

Can I reclaim VAT on business expenses?

If you’re VAT-registered and the purchase was for business use, you can reclaim the VAT on your return. You must have a valid VAT invoice showing the supplier’s VAT number. You cannot reclaim VAT on business entertaining (except for staff), cars used privately, or goods for non-business use.

What’s the difference between zero-rated and exempt supplies?

Zero-rated goods (most food, books, children’s clothes) are technically within the VAT system at 0%, meaning you charge no VAT but can reclaim VAT on related costs. Exempt supplies (insurance, education, healthcare) are outside the VAT system entirely — you don’t charge VAT but you also can’t reclaim VAT on associated costs. If you sell only exempt goods, you cannot register for VAT.

Does Northern Ireland have different VAT rates?

Generally, Northern Ireland uses the same VAT rates as the rest of the UK (20%, 5%, 0%). However, under the Windsor Framework, there are specific rules for certain goods moving between Northern Ireland and the EU. Energy-saving materials installed in Northern Ireland benefit from a temporary 0% rate until 31 March 2027, compared to 5% in Great Britain.

When are VAT returns due?

For most businesses on the standard quarterly scheme, your VAT return is due one month and seven days after the end of your accounting period. For example, if your quarter ends 31 March, your return and payment are due by 7 May. Payments must reach HMRC by the deadline — allow time for bank transfers.

What is the Flat Rate Scheme for VAT?

The Flat Rate Scheme (FRS) lets small businesses calculate VAT as a flat percentage of turnover, rather than tracking VAT on every purchase. The percentage depends on your industry sector. The scheme is available to businesses with turnover up to £150,000. Note that FRS was closed to new registrations from 1 April 2017 for businesses classified as “limited cost trader” (spending less than 2% of turnover on goods).

How do I calculate the VAT fraction for a flat rate?

If you’re on the Flat Rate Scheme, you apply your flat rate percentage to your gross (VAT-inclusive) turnover. The VAT fraction converts the standard 20% to a gross figure: 1/6. So for every £120 gross income at the standard 20% rate, £20 is VAT. On the FRS, if your rate is 12%, you pay £120 × 12% = £14.40 to HMRC and keep the remaining £5.60 of the collected VAT.

Related Calculators