Free tool
UK VAT calculator
Add VAT to a net price or strip it out of a gross one. Standard 20%, reduced 5% and zero rate, worked out as you type.
Net (excl. VAT)
£1,000.00
VAT at 20%
£200.00
Gross (incl. VAT)
£1,200.00
The maths, if you want to check it
- Adding 20% VAT: net × 1.2 = gross.
- Removing 20% VAT: gross ÷ 1.2 = net. Gross − net = the VAT.
- Reduced rate 5%: multiply or divide by 1.05 instead.
Rounding matters on invoices with several lines: calculate VAT on the total rather than rounding each line, or the customer's accountant will query the penny difference.
Common questions
How do I remove VAT from a gross figure?
Divide the gross amount by 1.2 for the standard 20% rate. The difference between the gross and that result is the VAT.
What VAT rate applies to building work?
Most repair and maintenance work is standard-rated at 20%. Certain energy-saving installations and qualifying residential conversions or renovations can be reduced-rated at 5%, and some new-build residential work is zero-rated. Check the current HMRC guidance for your specific job.
Do I have to charge VAT?
Only if you are VAT registered. Registration is compulsory once your taxable turnover passes the HMRC threshold, and voluntary below it.
This tool is general information, not tax advice. Rates and thresholds change — check current HMRC guidance or speak to your accountant for your own situation.
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