Use this simple calculator to work out VAT-inclusive and VAT-exclusive sums.
Amount
VAT Rate %
Amount:
£0.00
VAT %:
0.00%
VAT added:
£0.00
Gross Amount:
£0.00
Some useful VAT information
What is VAT?
Value Added Tax (VAT) is applied to most goods and services in the UK. It is charged at each stage of production and distribution but ultimately paid by the end consumer.
Current UK VAT Rates
- Standard rate (20%) applies to most goods and services.
- Reduced rate (5%) applies to specific goods and services, such as home energy and children’s car seats.
- Zero rate (0%) applies to essential items like most food, children’s clothing, and books.
Some items are VAT-exempt, meaning no VAT is charged. These include financial services, postage stamps, and education.
Do I need to register my business for VAT?
- VAT registration is mandatory if your business’s taxable turnover exceeds £90,000 in a 12-month period (the 2025/26 threshold).
- You can also register your business voluntarily, even if your turnover is below this threshold, which means you can reclaim the VAT your business pays. It may also provide a professional image in some industries.
Once registered, you must charge VAT on sales, submit VAT returns, and keep accurate records.
Adding VAT to invoices
If your business is VAT registered, you must add VAT to all invoices, include your registered VAT number, and clearly show the VAT breakdown.
Can my business claim VAT back?
Yes, if your business is VAT-registered, you can claim back the VAT on any business-related purchases.
How do I submit VAT returns?
- Businesses usually file quarterly VAT returns via HMRC’s Making Tax Digital (MTD) system.
- Payment deadlines are strict, and late filing (and late payments) can result in penalties.