VAT Calculator

Instantly add VAT to your net figures to get the total gross price.

Calculator Details

£
UK Standard (20%)
%

Calculation Summary

VAT to Add

£

0.00

Tax Amount

Total Gross Amount

£

0.00

Incl. Tax

How to Add VAT

Adding Value Added Tax to a net price is a straightforward multiplication.

1

Net Price

Start with your price excluding tax. E.g., £100.

2

Multiply

Multiply by 1.20 (1 + 20% rate).

3

Total

The result is your Gross Price including tax.

Comprehensive Guide to UK VAT

When Do You Need to Register for VAT?

In the UK, you must register for VAT if your VAT taxable turnover exceeds the current threshold of £85,000 over any rolling 12-month period. You can also choose to register voluntarily if your turnover is below this amount, which can be beneficial if you want to reclaim VAT on your business purchases.

Understanding Input vs. Output Tax

Output Tax is the VAT you charge your customers on your goods or services. Input Tax is the VAT you pay on business purchases. Generally, you pay the difference between your Output Tax and Input Tax to HMRC. If your Input Tax exceeds your Output Tax, you can reclaim the difference.

Common VAT Rates Explained

  • Standard Rate (20%): The default rate for most goods and services in the UK.
  • Reduced Rate (5%): Applies to specific items such as children's car seats and home energy.
  • Zero Rate (0%): Applies to essential items like most food, books, newspapers, and children's clothes. Note that zero-rated is different from "exempt" as zero-rated items are still part of your taxable turnover.

Making Tax Digital (MTD)

Under the Making Tax Digital initiative, all VAT-registered businesses must keep digital records and use MTD-compatible software to submit their VAT returns. This is designed to reduce errors and make managing tax affairs easier.

"Tip: Always verify the VAT status of your goods or services directly with HMRC guidance, as misclassification can lead to penalties."

Frequently Asked Questions

To calculate the VAT amount, multiply your Net price by 0.20. To find the total Gross price directly, multiply the Net price by 1.20.

Net refers to the price of goods or services before any tax is added. Gross is the final price the customer pays, inclusive of VAT.

Yes. While it defaults to the standard 20%, you can manually enter 5% for reduced-rate items or 0% for zero-rated items in the VAT Rate field.

Incorrect calculations can lead to underpaying or overpaying tax to HMRC. This may result in penalties or interest charges. Always double-check your figures using a reliable tool or software.

No. This tool adds VAT to a net amount. If you need to extract VAT from a gross total (reverse charge), please use our dedicated Reverse VAT Calculator.