VAT Calculator UK
The UK vat calculator provides page-specific estimates to help you add or remove UK VAT (20% or 5%) from any amount instantly.. Updated for 2026 UK statutory rules and reference parameters, it computes instant results tailored to your inputs.
How the UK VAT Calculator Works
Last updated: October 2026This calculator handles two operations: adding VAT to a net price, and removing VAT from a gross price. For adding VAT: Gross = Net × 1.20. For removing VAT: Net = Gross ÷ 1.20.
Inputs & Output Metrics
Required Input Parameters
- Principal / Initial Amount (£)
- Annual Interest Rate / Tax Band (%)
- Repayment Term / Duration
Calculated Output Results
- Total Repayment / Net Amount (£)
- Periodic Payment Breakdown (£)
- Total Interest / Duty Fee (£)
VAT Calculator Worked Calculation Example
Net Price: £100.00
VAT Rate: 20%
VAT = £20.00 | Gross Total = £120.00
Explanation: £100.00 × 0.20 = £20.00 VAT added to give £120.00 total.
Assumptions & Limitations
Model Assumptions
- Assumes 2026 UK HMRC tax rates, statutory thresholds, and allowance rules.
- Assumes standard UK tax code (1257L) unless custom parameters are specified.
- Calculations assume full tax year entitlement.
Real-World Limitations
- Illustrative estimate only; does not constitute formal tax or accounting advice.
- Does not account for unstated tax relief, pension salary sacrifice, or student loan deductions unless entered.
- Individual tax liabilities depend on self-assessment and full HMRC records.
Frequently Asked Questions
What is the standard UK VAT rate?
The standard UK VAT rate is 20%, which applies to most goods and services. A reduced rate of 5% applies to domestic energy and sanitary products, while 0% applies to basic food and children's clothing.
How do I remove VAT from a price (reverse VAT)?
To remove 20% VAT from a gross price, divide by 1.20. For example, £120 gross ÷ 1.20 = £100 net, with £20 VAT.
Do I need to register for VAT in the UK?
In the UK, you must register for VAT if your taxable turnover exceeds £90,000 in any 12-month period.
Is VAT charged on digital services in the UK?
Yes, digital services sold to UK consumers attract UK VAT at the standard 20% rate.
How do I charge VAT on an invoice?
Your VAT invoice must show your VAT registration number, date, net price, VAT rate, VAT amount, and gross total.
Disclaimer: This calculator is provided for informational and estimation purposes only and does not constitute financial, tax, or legal advice. Tax rates and financial rules reflect 2026 UK standards where applicable.