VAT calculator
Enter an amount, choose the rate and whether it is net or gross. The calculator shows the net, the VAT and the gross.
- The figures behind it · Standard rate
- 20 %
- Reduced rate
- 5 %
- Registration threshold
- £90,000 turnover
How VAT is calculated
Adding is a multiplication; removing is a division, not a subtraction of the same percentage.
- Adding VAT
- Net × 1.20 at the standard rate. £1,000 net is £1,200 gross.
- Removing VAT
- Gross ÷ 1.20. £1,200 gross contains £200 VAT, not £240: taking 20 % off the gross is the common mistake.
- Rates
- 20 % standard; 5 % for domestic energy, children's car seats and some renovations; 0 % for most food, books and children's clothes. Exempt supplies carry no VAT at all.
Rule set 2026.1, last checked on October 12, 2026.
The result is an estimate based on the statutory rules. Your contract, collective agreement or tax code may change the figures. It is not tax or legal advice.
Frequently asked questions
How do I work out VAT backwards?
- Divide the gross by 1.2 to get the net, then subtract to get the VAT. Or multiply the gross by 1/6: £120 gross contains £20 VAT.
When must I register for VAT?
- When your taxable turnover passes £90,000 in any 12 months, or will do so within 30 days. Voluntary registration is possible below that.
Which rate applies to my invoice?
- Most goods and services are standard-rated at 20 %. Check HMRC's VAT rates list for reduced, zero-rated and exempt items.
Other calculators
Gross to net salary calculator
Take-home pay from a gross salary, with tax and National Insurance on separate lines.
Calculate →Net to gross salary calculator
The gross salary to negotiate so a given net lands in your account.
Calculate →Hourly to monthly salary calculator
An hourly rate as a weekly, monthly and annual figure, from your hours per week.
Calculate →Overtime pay calculator
Your hourly rate from the salary and what the extra hours pay at your contract's premium.
Calculate →Holiday pay calculator
What a day of leave is worth and what your unused holiday pays out.
Calculate →Freelance hourly rate calculator
The hourly and day rate you need to charge to take home what you want.
Calculate →Total employer cost calculator
Gross salary plus employer National Insurance and pension: the real cost of a hire.
Calculate →Cost per hire calculator
Advertising, agency fees, recruiter time and onboarding divided by the hires they produce.
Calculate →Employee turnover cost calculator
How many people leave each year and what replacing them really costs.
Calculate →Recruitment agency margin calculator
Pay rate, on-costs and bill rate: the markup and margin on every placed worker.
Calculate →Client bill rate calculator
The hourly rate to quote a client so the margin you want is left after the worker's full cost.
Calculate →Placement fee calculator
The fee a permanent placement earns, what the search cost, and the profit it leaves.
Calculate →