VAT Calculator UK 2026
Adding 20% VAT to £100 gives £120 (£20 VAT). Removing 20% VAT from £100 gives £83.33 net and £16.67 VAT, because VAT is 20% of the net price, not of the gross.
- Every rate links to its official source
- Checked against official examples on every build
- Rates reviewed 25 October 2026
| Net (before VAT) | |
| VAT at 20% | |
| Gross (including VAT) |
How we got this number
VAT = net x 20/100 = £100.00 x 0.200 = £20.00. Gross = net + VAT = £120.00.
UK VAT rates 2026
| Rate | Applies to |
|---|---|
| Standard 20% | Most goods and services |
| Reduced 5% | Home gas, some energy-saving materials, children's car seats, mobility aids for older people |
| Zero 0% | Most food, books and newspapers, children's clothes and shoes, public transport, exports. Domestic electricity in Great Britain from 1 October 2026 (verify on your supplier's bill) |
| Exempt | Insurance, finance, education, health, postage. No VAT charged and none reclaimable |
The registration threshold is £90,000 of VAT-taxable turnover in a rolling 12 months.
Quick table: add and remove 20% VAT
| Amount | + 20% VAT (gross) | VAT added | Net if this is the gross | VAT inside it |
|---|---|---|---|---|
| £10 | £12.00 | £2.00 | £8.33 | £1.67 |
| £25 | £30.00 | £5.00 | £20.83 | £4.17 |
| £50 | £60.00 | £10.00 | £41.67 | £8.33 |
| £100 | £120.00 | £20.00 | £83.33 | £16.67 |
| £250 | £300.00 | £50.00 | £208.33 | £41.67 |
| £500 | £600.00 | £100.00 | £416.67 | £83.33 |
| £1,000 | £1200.00 | £200.00 | £833.33 | £166.67 |
| £2,500 | £3000.00 | £500.00 | £2083.33 | £416.67 |
| £5,000 | £6000.00 | £1000.00 | £4166.67 | £833.33 |
| £10,000 | £12000.00 | £2000.00 | £8333.33 | £1666.67 |
The two formulas
Add VAT: gross = net x (1 + rate). At 20%, multiply by 1.2. Remove VAT (reverse VAT): net = gross divided by (1 + rate). At 20%, divide by 1.2. At 5%, divide by 1.05. The VAT element of a gross price at 20% is gross divided by 6 (one sixth), a shortcut accountants use: £120 divided by 6 = £20. The most common mistake is subtracting 20% from the gross, which overstates the VAT by a fifth.
Invoices and rounding
HMRC lets you round the VAT on an invoice down to the nearest penny for the total, or round to the nearest 0.5p per line, as long as you are consistent. This calculator rounds half up to the nearest penny, which matches most accounting software.
The words on this page, in plain English
- VAT
- Value Added Tax, a tax added to the price of most goods and services. In the UK the usual rate is 20%.
- Net price
- The price before VAT is added.
- Gross price
- The price including VAT. This is what a shopper pays.
- Remove VAT (reverse VAT)
- Working back from a price that includes VAT to find the price before VAT. You divide by 1.2, you do not take 20% off.
- Zero-rated vs exempt
- Zero-rated items (most food, books, children's clothes) have VAT at 0% and the seller can still reclaim VAT on costs. Exempt items (insurance, education) have no VAT and no reclaim.
- Flat Rate Scheme
- A simpler way for small businesses to pay VAT: a fixed percentage of all takings instead of tracking VAT on every purchase.
Questions people ask
How do I add 20% VAT to a price?
Multiply the net price by 1.2. £100 net becomes £120, of which £20 is VAT.
How do I take VAT off a price?
Divide the gross price by 1.2 (for 20% VAT). £100 gross is £83.33 net plus £16.67 VAT. Taking 20% off the gross gives the wrong answer (£80), because the VAT was 20% of the smaller net figure.
What are the UK VAT rates in 2026?
Standard 20% on most goods and services. Reduced 5% on things like children's car seats and home energy (gas. Domestic electricity in Great Britain moved to 0% from 1 October 2026 under a 2026 change, so check your bill). Zero rate on most food, books, children's clothes and exports. Some supplies are exempt (insurance, education, finance), which is not the same as zero-rated.
When do I have to register for VAT?
When your VAT-taxable turnover in any rolling 12 months passes £90,000, or you expect it to in the next 30 days. You can register voluntarily below that to reclaim VAT on costs.
How does the Flat Rate Scheme work?
You charge customers VAT as normal but pay HMRC a fixed percentage of your VAT-inclusive turnover, set by sector (for example 14.5% for IT consultancy), and keep the difference instead of reclaiming VAT on purchases. It is open to businesses with VAT-taxable turnover of £150,000 or less, with a 1% discount in the first year of registration. "Limited cost" businesses must use 16.5%.
Sources
The calculator on this page reads its rates from the same file these links are listed in. If a rate changes, the source list changes with it.
- GOV.UK: VAT rates on different goods and services (checked 25 October 2026)
- GOV.UK: VAT registration thresholds (checked 25 October 2026)
- GOV.UK: Flat Rate Scheme percentages (checked 25 October 2026)
General information to help you plan, not tax advice. VAT calculators for 30 more countries are on the way, each with its own official source.