Tax calculators
UK VAT Calculator
Add VAT to a net figure or strip VAT out of a VAT-inclusive figure, at the standard rate or any other rate you need.
Gross amount including VAT
£1,200.00
VAT at 20%
VAT: £200.00
Breakdown
- Net amount (excluding VAT)
- £1,000.00
- VAT
- £200.00
- Gross amount (including VAT)
- £1,200.00
Useful thresholds
- VAT registration thresholdTaxable turnover in any rolling 12-month period
- £90,000
- Deregistration threshold
- £88,000
These calculations are estimates based on the information entered and the tax rates and assumptions shown. They are intended as a general guide and do not constitute tax advice. Your actual tax position may differ depending on your circumstances, reliefs, other income and applicable tax rules.
About this tool
What the VAT calculator does
This calculator does the two jobs businesses need most often: adding VAT to a net price so you know what to invoice, and removing VAT from a gross figure so you know what the sale or purchase is really worth before tax.
It defaults to the UK standard rate of 20%, and you can type any other percentage where a different rate applies — for example the reduced rate of 5% on domestic fuel and certain energy-saving materials.
Method
How the calculation works
Adding VAT. VAT is the net amount multiplied by the rate. At 20%, a net figure of £1,000 carries £200 of VAT and a gross price of £1,200.
Removing VAT. The net amount is the gross figure divided by one plus the rate. At 20%, a gross figure of £1,200 divided by 1.2 gives a net of £1,000 and VAT of £200. Taking 20% off £1,200 would wrongly give £960.
Results are shown to the penny. HMRC allows VAT on an invoice to be rounded down to the nearest penny, and different rounding conventions apply to invoices with many line items.
Thresholds
VAT registration thresholds
The registration threshold is £90,000 of taxable turnover in any rolling 12-month period — not a calendar or financial year, which is why it can catch growing businesses by surprise.
The deregistration threshold is £88,000. If your taxable turnover falls below it and is expected to stay there, you can ask to deregister.
Voluntary registration below the threshold can be worth it where your customers are VAT-registered businesses and you incur significant input VAT. It is rarely worth it where you sell mostly to consumers.
Assumptions
What this calculator assumes
It performs straightforward VAT arithmetic at the rate you enter. It does not decide whether a supply is standard-rated, reduced-rated, zero-rated or exempt, and it does not model the Flat Rate Scheme, margin schemes, partial exemption or the reverse charge used in construction.
If you are unsure how a particular supply should be treated, our VAT service covers registration, scheme selection and quarterly returns, and our bookkeeping service keeps the underlying records in order.
Rates and assumptions
What this calculator uses
- Tax year shown
- 2026/27
- Geographical scope
- England, Wales and Northern Ireland
- Rates last reviewed
- 19 September 2026
- Source of rates
- HMRC / GOV.UK
Official guidance
- VAT rates (GOV.UK)
- VAT rates on different goods and services (GOV.UK)
- Register for VAT (GOV.UK)
- VAT Flat Rate Scheme (GOV.UK)
These calculations are estimates based on the information entered and the tax rates and assumptions shown. They are intended as a general guide and do not constitute tax advice. Your actual tax position may differ depending on your circumstances, reliefs, other income and applicable tax rules.
Questions
Common questions
Divide the VAT-inclusive figure by 1.2 at the standard rate. The result is the net amount, and the difference is the VAT. Dividing by 1.2 is not the same as taking 20% off — that is a common and expensive mistake on quotes and invoices.
Need help with VAT?
Registration, scheme choice, quarterly returns and Making Tax Digital — we handle VAT for businesses across Scunthorpe and North Lincolnshire.
Related services
Services that work alongside this
- Explore bookkeeping
Accurate, reconciled records kept up to date weekly or monthly, so VAT, payroll and year-end all take care of themselves.
- Explore vat
Registration, scheme selection, quarterly returns and the awkward questions — reverse charge, partial exemption and cross-border supplies.