VAT Calculator (UK)
UK VAT is 20% (standard rate), and half the confusion is direction: are you adding VAT to a net price, or working backwards from a gross price? This calculator does both at once — enter any amount and see the net-to-gross and gross-to-net results side by side, with the VAT amount in each direction.
How VAT math works
The standard UK VAT rate is 20%. A reduced rate of 5% applies to some goods (e.g. domestic energy), and zero-rating covers food staples, children's clothing and books.
To remove VAT from a gross (VAT-inclusive) price, divide by 1.20 — not multiply by 0.80. Multiplying by 0.80 is the classic mistake and understates the net.
VAT-registered businesses reclaim input VAT on purchases, so the VAT on your costs is typically neutral — what matters is charging output VAT correctly on sales.
Frequently asked questions
How do I remove 20% VAT from a price?
Divide the gross price by 1.20. A £120 gross price contains £20 of VAT (net £100).
When do I need to register for VAT?
When your taxable turnover exceeds £90,000 in a rolling 12 months (2024–2026 threshold), or voluntarily at any time.
Does the calculator handle the 5% reduced rate?
Yes — change the rate input to 5 (or any rate) and both directions recalculate.
Related tools
- Rates: HMRC VAT rates (standard 20%, reduced 5%, zero 0%). Registration threshold £90,000 (2024–2026).
Last updated: 2026-09-08