Value Added Tax
VAT Calculator
Add VAT to a net amount or work out how much VAT is inside a gross figure — at the standard 20%, reduced 5%, zero rate, or your own percentage.
Gross price (what you charge)
£1,200.00
VAT at 20%: £200.00
- Net amount
- £1,000.00
- VAT at 20%
- £200.00
- Gross amount
- £1,200.00
Removing VAT from a gross figure divides by 1 + 20% rather than subtracting 20% — 20% of the gross is not the VAT element.
You must register for VAT once your taxable turnover passes £90,000 in any rolling 12-month period — or if you expect to pass it in the next 30 days. You can also register voluntarily below the threshold, which can make sense if your clients are VAT-registered businesses.
The standard rate of 20% applies to most contractor services. The reduced 5% rate covers a small set of goods and services (such as home energy), and zero-rated supplies still count towards the registration threshold. Some supplies — like insurance and many financial services — are exempt instead, which is different from zero-rated.
This is a calculation aid, not tax advice. Check the current VAT rules on GOV.UK or speak to your accountant before making registration decisions.