VAT Calculator UK: Add or Remove VAT at 20%, 5% and 0%
Work out the VAT on a price in either direction, see whether your turnover means you have to register, and test whether the Flat Rate Scheme would cost you more or less than normal VAT returns.
Tax year 2026/27 · Estimates, not personal tax advice
Price including VAT
£1,200
| Net (excluding VAT) | £1,000.00 |
| VAT at 20% | £200.00 |
| Gross (including VAT) | £1,200.00 |
Do you need to register for VAT?
You must register if your taxable turnover goes over £90,000 in any rolling 12 months, or you expect it to go over that in the next 30 days alone.
Include standard, reduced and zero-rated sales. Leave out exempt sales.
Flat Rate Scheme or standard VAT?
Open to businesses expecting turnover of £150,000 or less (excluding VAT) in the next 12 months. You leave once VAT-inclusive turnover passes £230,000.
Find the percentage for your business type on GOV.UK. Ignored if you're a limited cost trader.
Goods used only for the business. Not services, fuel, food for staff, or capital items.
Rates and rules used
Tax year 2026/27Default year 2026/27 (6 April to 5 April). 2025/26 and 2024/25 figures are kept for comparison where the calculator offers a year choice.
- UK VAT rates (20%, 5% and 0%)2026/27GOV.UK: VAT rates (opens in new tab)
- Registration threshold £90,000 and deregistration £88,0002026/27GOV.UK: Register for VAT (opens in new tab)
- Flat Rate Scheme limits and limited cost trader rate2026/27GOV.UK: VAT Flat Rate Scheme (opens in new tab)
- Flat rate percentages by business typeVAT rates and thresholds are not tied to the tax year; they apply until changed.GOV.UK: Flat rates by business type (opens in new tab)
Independent site, not affiliated with HMRC. Always check GOV.UK for the latest figures.
How this calculation works
- 01Choose the VAT rate that applies to the item.
- 02To add VAT, multiply the net price by the rate.
- 03To remove VAT, divide the gross price by 1 plus the rate.
- 04For the Flat Rate Scheme, apply your sector percentage to VAT-inclusive turnover.
Real payroll can differ because tax and NI are worked out per pay period, and your tax code may include adjustments HMRC hasn't told you about. See our methodology.
The three UK VAT rates
Most goods and services carry the standard rate of 20%. Some things, such as domestic energy and children's car seats, carry the reduced rate of 5%. Others, including most food and children's clothes, are zero-rated: VAT applies, but at 0%, so a registered business can still reclaim VAT on its costs.
Exempt supplies, such as most insurance and some education, are different from zero-rated ones. They sit outside VAT altogether, and VAT on the costs of making them usually can't be reclaimed.
Removing VAT from a price
To find the VAT inside a price that already includes 20%, divide by 1.2 to get the net figure; the VAT is the difference. Taking 20% off the gross price is a common mistake and understates the net amount. At 5%, divide by 1.05.
Understanding your vat calculator result
The VAT figures show the net price, the VAT and the gross price for whichever direction you chose. The registration check compares your rolling 12-month turnover with the threshold, and the Flat Rate Scheme comparison shows how much VAT you would hand to HMRC under each method over a year.
A web designer weighing up the Flat Rate Scheme
Scenario: A designer bills £60,000 plus VAT, so £72,000 including VAT. They spend £400 a year on goods and £1,500 of VAT on other costs.
How to use the result: Goods spend is under £1,000, so they are a limited cost trader at 16.5%: £11,880 a year. Standard accounting would be £12,000 output VAT minus £1,500 reclaimed, so £10,500. Standard returns save them £1,380.
Details to check before relying on the estimate
- Use turnover from the last 12 months, not the tax year, for the registration test.
- Check your flat rate percentage on GOV.UK for your exact business type.
- Exempt sales don't count towards the registration threshold, but zero-rated ones do.
Putting the estimate into perspective
Label amounts as VAT-inclusive or VAT-exclusive in quotes and records. The VAT part of a customer payment should not be mistaken for extra business profit.
Frequently asked questions
What is the VAT registration threshold?
£90,000 of taxable turnover in any rolling 12-month period, or if you expect to go over £90,000 in the next 30 days alone. You can register voluntarily below it.
Check it on GOV.UK: Income Tax rates and allowances (opens GOV.UK in a new tab)
Can I deregister from VAT?
Yes, if you expect your taxable turnover in the next 12 months to be below £88,000.
Check it on GOV.UK: Income Tax rates and allowances (opens GOV.UK in a new tab)
How do I remove VAT from a price?
Divide the VAT-inclusive price by 1.2 for standard-rated items, or by 1.05 for reduced-rated ones. The difference between the two figures is the VAT. Taking 20% off the gross price gives the wrong answer.
Check it on GOV.UK: VAT rates (opens GOV.UK in a new tab) · Register for VAT (opens GOV.UK in a new tab)
Who can join the VAT Flat Rate Scheme?
VAT-registered businesses that expect taxable turnover, excluding VAT, of £150,000 or less in the next 12 months. You must leave if your VAT-inclusive turnover goes above £230,000.
Check it on GOV.UK: Income Tax rates and allowances (opens GOV.UK in a new tab)
What is a limited cost trader?
A business whose spending on goods, including VAT, is less than 2% of its VAT-inclusive turnover, or less than £1,000 a year if that is more. Limited cost traders pay a flat rate of 16.5% whatever their sector.
Check it on GOV.UK: VAT rates (opens GOV.UK in a new tab) · Register for VAT (opens GOV.UK in a new tab)
Is the Flat Rate Scheme always cheaper?
No. It suits businesses with few costs carrying VAT. You can't reclaim VAT on most purchases, so businesses with large VAT-bearing costs often pay more. Compare both methods with your own figures.
Check it on GOV.UK: VAT rates (opens GOV.UK in a new tab) · Register for VAT (opens GOV.UK in a new tab)
Related calculators
- Self Employed Tax Calculator — See Income Tax and NI on the profit left after VAT.
- Corporation Tax Calculator — Work out tax on your company's profit.
- Freelancer Tax Calculator — Estimate your full tax bill as a freelancer.
Related guides
- VAT Explained: Rates, Registration and the Flat Rate Scheme — A plain-English guide to UK VAT: the three rates, when you must register, how to add and remove VAT, and whether the Flat Rate Scheme suits you.
- Tax for the Self-Employed — How sole traders are taxed in the UK: Income Tax on profit, Class 4 NI, allowable expenses and payments on account.
- Corporation Tax Explained — How UK limited companies pay Corporation Tax: the 19% small profits rate, 25% main rate, marginal relief between £50,000 and £250,000, and how VAT fits alongside it.