UK HMRC Compliant

UK VAT Calculator: HMRC Value Added Tax

Calculate UK Value Added Tax (VAT) instantly. Add VAT to net pricing (exclusive) or remove VAT from gross totals (inclusive) with support for Standard 20%, Reduced 5%, and Zero 0% rates compliant with HM Revenue and Customs rules.

UK VAT Calculation

HMRC Rates 2024 / 2025

Calculation Mode

Choose "Add VAT" for B2B quotes or "Remove VAT" to find base cost from retail receipts.

Enter Amount (£)

HMRC VAT Rate

20%: Most goods & services | 5%: Domestic energy, car seats | 0%: Books, children's clothes, most food.

Or Custom VAT Rate (%)

HMRC VAT Breakdown

Net Price (Excl. VAT): £1,000.00

Applicable VAT Rate: 20%

Total VAT Amount: £200.00

Gross Total (Incl. VAT)

£1,200.00

Create Multi-Currency Invoice

How UK VAT is Calculated

Adding 20% VAT (Net to Gross)

Multiply the net amount by 1.20, or multiply by 0.20 to get the tax portion:

VAT Amount = Net Amount × 0.20 Gross Price = Net Amount × 1.20

Removing 20% VAT (Gross to Net)

To reverse VAT out of a gross receipt, divide the total by 1.20 (or multiply by 1/6):

Net Amount = Gross Total / 1.20 VAT Amount = Gross Total − Net Amount

UK VAT Frequently Asked Questions

When must a UK business register for VAT?

You must register for VAT with HMRC if your business's VAT taxable turnover exceeds £90,000 (increased from £85,000 from 1 April 2024) over a rolling 12-month period, or if you expect it to exceed that within the next 30 days.

What is the difference between Zero-rated and Exempt items?

For Zero-rated goods (such as books, children's clothing, and staple groceries), VAT is 0%, but you can still reclaim VAT on input expenses. For exempt supplies (like financial services, insurance, and medical care), no VAT is charged, but you generally cannot reclaim input VAT on related costs.