UK VAT Tools
VAT Calculator
Add or remove UK VAT at standard, reduced or zero rate. Designed for HMRC-compliant invoicing and bookkeeping.
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Net (excl. VAT)£1,000.00
VAT (20%)£200.00
Gross (incl. VAT)£1,200.00
Tip: The standard UK VAT rate is 20%. Most goods and services use this rate. Reduced (5%) applies to items like children's car seats and home energy.
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Pick a Mode
Decide whether you're adding VAT to a net price or extracting it from a gross total.
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Set the Rate
Standard 20% covers most sales. Use Reduced (5%) or Zero (0%) where applicable.
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Use on Invoices
Show net, VAT and gross separately on every HMRC-compliant invoice you issue.
Common Questions
When must I register for VAT?expand_more
Registration becomes compulsory the moment your VAT-taxable turnover passes £90,000 over any rolling 12-month window — not your accounting year. You must also register if you expect to cross the threshold in the next 30 days alone. Voluntary registration below the threshold can make sense if most of your customers are VAT-registered, since you can then reclaim VAT on purchases.
Which VAT rate should I charge?expand_more
Standard rate (20%) covers most goods and services. Reduced rate (5%) applies to domestic energy, children's car seats, and home energy-saving installations. Zero-rated (0%) covers most food, children's clothing, books, and public transport — you still record the sale on your VAT return but charge no VAT. Some items (financial services, education, healthcare) are exempt and don't appear on returns at all.
Should I use the Flat Rate Scheme instead?expand_more
If turnover is under £150,000 you can apply a single flat percentage (8.5%–16.5% depending on sector) to your gross sales instead of tracking input VAT line by line. It simplifies bookkeeping but you usually can't reclaim VAT on purchases under £2,000. Service businesses with low expenses often save money on Flat Rate; product resellers usually don't — run both for a typical quarter before deciding.
What records do I need to keep?expand_more
HMRC requires VAT records for at least 6 years: sales and purchase invoices, your VAT account, import/export documents, and any credit notes. Under Making Tax Digital these must be kept digitally and submitted via MTD-compatible software — spreadsheets alone no longer satisfy the rule.
Is this calculator HMRC-approved?expand_more
It applies the published HMRC rates exactly, which is what matters for the maths. For filing your actual VAT return you must use a Making Tax Digital compatible bookkeeping tool (Xero, QuickBooks, FreeAgent, etc.). Use this calculator for quoting, invoicing checks, and quick reconciliations.