HMRC Compliant
Reverse VAT Calculator
Extract the net amount and VAT element from a VAT-inclusive total. Ideal for receipts and reconciliations.
receipt_longGross Receipt
calculateBreakdown
Net (excl. VAT)£1,000.00
VAT (20%)£200.00
Gross Total£1,200.00
Net Share
83.3%
VAT Share
16.7%
input
Enter Gross
Type the total amount you paid or received including VAT.
percent
Pick Rate
Use 20% for standard goods, 5% for reduced-rate items.
fact_check
Reconcile
Use the net amount to post into your bookkeeping system.
Common Questions
How is VAT extracted from a gross figure?expand_more
Divide the gross by (1 + rate). At 20%, net = gross ÷ 1.20 and VAT is the remainder. At 5%, divide by 1.05. Quick mental check: at 20%, the VAT element is exactly 1/6th of the gross figure (e.g. £120 gross → £20 VAT, £100 net).
Can I reclaim the VAT on this purchase?expand_more
If you're VAT-registered and the purchase is wholly for business use, yes — claim it as input VAT on your next return. For mixed-use items (phone, car, home office) you must apportion the business element fairly. Keep the original VAT receipt for at least 6 years; bank statements alone aren't sufficient evidence for HMRC.
What if the supplier didn't charge VAT?expand_more
Then there's nothing to reclaim. Common reasons a supplier won't charge VAT: they're below the £90,000 threshold and not registered, the goods are zero-rated or exempt, or it's a reverse-charge transaction (common for EU services or construction industry) where you account for the VAT yourself on both sides of the return.
What about partially exempt purchases?expand_more
If your business makes both taxable and exempt supplies (e.g. financial services alongside consultancy), you can usually only reclaim the proportion of VAT relating to taxable activities. The 'partial exemption' rules are complex — speak to an accountant before reclaiming if exempt supplies exceed roughly 50% of turnover.
How do I record reclaimable VAT?expand_more
Enter the gross amount, net, and VAT separately in your bookkeeping software so the input VAT flows through to box 4 of your VAT return. Most MTD tools (Xero, QuickBooks, FreeAgent) do this automatically when you mark the supplier as VAT-registered and select the right rate.