UK VAT Calculator 2026/27
Add or remove VAT at 20%, 5% or a custom rate. Net, VAT and gross update instantly as you type.
Calculate VAT
Enter the amount excluding VAT
Click any row to load that amount into the calculator.
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VAT (Value Added Tax) is charged on most UK goods and services. VAT-registered businesses charge VAT on sales (output tax) and reclaim VAT on purchases (input tax). You pay or reclaim the difference to/from HMRC.
You must register when your rolling 12-month taxable turnover exceeds £90,000 (unchanged for 2026/27). Voluntary registration can benefit you if clients reclaim VAT and you have VATable costs.
To add VAT at 20%, multiply by 1.20. Example: £500 × 1.20 = £600. The VAT is £100.
To remove VAT at 20%, divide by 1.20. Example: £1,200 ÷ 1.20 = £1,000. The VAT is £200. Don't just subtract 20%!
20% Standard – most goods/services. 5% Reduced – home energy, child car seats. 0% Zero – most food, children's clothes, books. Some items are VAT exempt.
It suits low-expense contractors. You charge clients the normal 20% but pay HMRC a fixed percentage of your VAT-inclusive turnover — 14.5% for computer and IT consultancy, less 1 point in your first year of VAT registration. The catch is the limited cost business test: if your spend on goods is under 2% of that turnover, or under £1,000 a year (£250 a quarter), the rate is 16.5% whatever your sector — and at 16.5% of gross the scheme is worth almost nothing. You also give up input VAT recovery on most purchases, apart from capital assets over £2,000. Work it out on the flat rate VAT calculator.
Zero-rated: no VAT is charged, but the supply is still taxable, so you can reclaim input VAT on related purchases. Exempt: no VAT is charged and you generally cannot reclaim the related input VAT. The distinction matters for registration too — zero-rated turnover counts towards the £90,000 threshold, exempt turnover does not.
About UK VAT calculations
This free VAT calculator helps UK contractors, freelancers, and businesses convert between net (excluding VAT) and gross (including VAT) amounts instantly.
VAT calculation formulas
- Add VAT: Gross = Net × (1 + rate). At 20%: Gross = Net × 1.20
- Remove VAT: Net = Gross ÷ (1 + rate). At 20%: Net = Gross ÷ 1.20
- VAT Amount: VAT = Gross − Net
VAT registration threshold
Register for VAT when taxable turnover exceeds £90,000 in any rolling 12-month period. See GOV.UK VAT registration.
VAT registered — or should be? Get a contractor accountant.
Contractor accountants handle VAT returns, Making Tax Digital and your annual accounts as standard. Compare specialists.
Compare contractor accountants →Featured firms pay to appear. All specialise in contractors.- Subtracting 20% to remove VAT. £1,200 − 20% = £960 is wrong; £1,200 ÷ 1.20 = £1,000 is right.
- Forgetting the reverse charge. Most B2B services to overseas business customers are outside the scope of UK VAT. For EU customers you can check a VAT number on VIES.
- Missing the limited cost business test. On the Flat Rate Scheme, check every period whether you have dropped to 16.5% — it is measured on goods, and services do not count.
- Invoice date versus payment date. On the normal accrual basis you owe the VAT when you invoice, not when you are paid. Cash accounting is available if cash flow is tight.
- Incomplete VAT invoices. A valid invoice needs your VAT number, the date, a unique sequential number, the supply description, the net amount, the rate and the VAT charged.
The full rules are in HMRC VAT Notice 700. Making Tax Digital for VAT applies to all VAT-registered businesses.
This calculator provides arithmetic calculations only. Verify with HMRC guidance or a qualified accountant.