How to use the UK VAT Calculator
- 1 Choose whether to add VAT (net → gross) or remove VAT (gross → net).
- 2 Enter the amount and pick a country, or type your own VAT rate.
- 3 Read the net amount, the VAT and the gross amount.
VAT rates in the UK
- 20% – standard rate for most goods and services.
- 5% – reduced rate, for example for domestic energy, children’s car seats and some energy-saving materials.
- 0% – zero rate for most food, books, newspapers and children’s clothing.
Quick maths for 20% VAT
- Add VAT: multiply by 1.2. £250 + VAT = £300.
- Remove VAT: divide by 1.2. £300 including VAT = £250 net.
- VAT in a gross price: divide by 6. A £300 gross price contains £50 VAT.
Registering for VAT
UK businesses must register for VAT when their taxable turnover exceeds the registration threshold set by HMRC. Below it, registration is voluntary. Always check HMRC guidance for current thresholds and rules.
Frequently asked questions
How do I add 20% VAT?
Multiply the net price by 1.2. For example, £80 × 1.2 = £96 including VAT.
How do I work out VAT from a total?
At 20%, divide the total by 6 to get the VAT, or by 1.2 to get the net amount.
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