United Kingdom
UK VAT Calculator
Add or remove VAT at the UK standard rate of 20%, the reduced rate of 5%, or zero rate.
How to use the UK VAT Calculator
- Enter your amount and choose whether it already includes VAT.
- Pick the rate — 20% standard, 5% reduced, or 0% zero-rated.
- Read the net, VAT and gross figures with the arithmetic shown.
UK VAT rates and what falls under each
| Rate | Applies to |
|---|---|
| 20% standard | Most goods and services, including electronics, alcohol, and professional services |
| 5% reduced | Domestic fuel and power, children’s car seats, mobility aids for the over-60s, some home renovations |
| 0% zero-rated | Most food, books and newspapers, children’s clothing and footwear, prescription medicines, public transport |
| Exempt | Insurance, finance and credit, education and training, postage stamps, most healthcare |
| Outside scope | Statutory fees, goods sold outside the UK, some charity donations |
Zero-rated and exempt are not the same thing, and the difference matters commercially. Zero-rated supplies are taxable at 0%, so you can reclaim input VAT on the costs of making them. Exempt supplies are not taxable at all, so you cannot. A business making only exempt supplies cannot register for VAT and cannot reclaim anything.
The £90,000 registration threshold
You must register for VAT if your taxable turnover exceeds £90,000 in any rolling 12-month period, or if you expect to exceed it within the next 30 days alone. The threshold rose from £85,000 in April 2024.
Rolling means exactly that — it is not the tax year. You check the previous 12 months at the end of every month, and the obligation starts the moment the total crosses.
Deregistration is possible if turnover falls below £88,000.
Voluntary registration below the threshold is common and often sensible. If your customers are VAT-registered businesses they reclaim the VAT you charge, so it costs them nothing, and you reclaim VAT on your own purchases. If your customers are consumers, registering makes you 20% more expensive overnight — which is why many small B2C businesses deliberately stay under.
How to remove VAT from a gross price
Divide by 1.2, not subtract 20%. This is the calculation most people get wrong, and always in the same direction.
A £120 gross price has a net of £120 ÷ 1.2 = £100 and VAT of £20. Subtracting 20% instead gives £96, which is wrong by £4, because the 20% was calculated on the net figure rather than the gross one. As a share of the gross, VAT at 20% is 16.67%.
The shortcut worth memorising: divide the gross by 6 to get the VAT. £150 ÷ 6 = £25. It works because 20/120 simplifies to 1/6.
The Flat Rate Scheme
Businesses with turnover under £150,000 can join the Flat Rate Scheme, paying a fixed percentage of gross turnover instead of accounting for VAT on every transaction. You still charge customers 20%; you just hand over less and stop reclaiming input VAT.
Rates run from 4% for food retail to 14.5% for consultancy and IT. There is a 1% discount in the first year of registration.
The catch is the "limited cost trader" test introduced in 2017: if your spend on goods is under 2% of turnover, or under £1,000 a year, you pay 16.5% regardless of sector. That rate was set deliberately high to remove the advantage for service businesses with few costs, and it makes the scheme unattractive for most consultants and agencies.
Making Tax Digital
All VAT-registered businesses must keep digital records and file returns through MTD-compatible software. There is no longer a turnover exemption — it applies from the first return once you are registered.
Returns are quarterly by default, with payment due one month and seven days after the period ends. The digital link requirement means data must flow between systems without manual re-keying; copying a figure from a spreadsheet into a portal by hand does not satisfy it.
This calculator works out the arithmetic. It is not MTD software and does not file anything.
Frequently asked questions
What is the UK VAT rate in 2026?
20% standard, 5% reduced on domestic fuel and some renovations, and 0% on most food, books and children’s clothing.
How do I remove 20% VAT from a price?
Divide the gross by 1.2. To get the VAT amount directly, divide the gross by 6 — £150 ÷ 6 = £25.
When must I register for VAT?
When taxable turnover exceeds £90,000 in any rolling 12-month period, or when you expect to exceed it in the next 30 days alone.
What is the difference between zero-rated and exempt?
Zero-rated supplies are taxable at 0%, so you can reclaim input VAT on your costs. Exempt supplies are not taxable at all and you cannot reclaim.
Should I register voluntarily?
If you sell to VAT-registered businesses, usually yes — they reclaim what you charge and you reclaim on your purchases. If you sell to consumers, it makes you 20% more expensive.
Is the Flat Rate Scheme worth it?
Rarely for service businesses since the 2017 limited cost trader rule, which forces a 16.5% rate on anyone spending under 2% of turnover on goods. It can still suit businesses with genuine material costs.
Are my figures sent anywhere?
No. The calculation runs in your browser.