ecommerce Optimized
UK VAT Calculator
Need to add tax to a quote or remove it from a receipt? Our zero-lag tool handles standard and reduced rates instantly.
VAT Calculator
£
VAT Amount (20%)£20.00
Net Amount£100.00
Inclusive Total£120.00
Pro Tip: The current UK VAT registration threshold is £90,000. If your rolling 12-month turnover exceeds this, you must register with HMRC.
VAT Math Simplified
Calculating VAT isn't as simple as adding 20%. When you are "removing" VAT from a total price, you have to account for the fact that the original VAT was calculated on the net amount, not the gross.
Adding VAT (20%)
Multiply your net price by 1.2.
Example: £100 x 1.2 = £120.
Removing VAT (20%)
Divide your total price by 1.2.
Example: £120 / 1.2 = £100.
The VAT Registration Threshold
As of April 1st, 2024, the threshold for VAT registration was increased to £90,000. If your taxable turnover over the last 12 months (on a rolling basis) exceeds this, you must register.
VAT FAQs
The 5% VAT rate applies to specific goods and services such as domestic fuel/power, energy-saving materials, and some children's car seats.
Only if you are VAT Registered. Once registered, you can reclaim the VAT you pay on business-related purchases, but you must also charge VAT on your sales.
It is a simplified VAT scheme for small businesses where you pay a fixed percentage of your total turnover to HMRC and don't reclaim most expenses.