CalcFree

VAT Calculator (UK)

Add or remove UK VAT from any price at 20% standard rate, 5% reduced rate, or custom rates with instant net and gross breakdowns.

See also: Percentage Increase Calculator, Discount Calculator, How UK VAT Works: A Plain-English Guide for Freelancers and Shoppers

How it is calculated

Add VAT: Gross = Net × (1 + Rate); Remove VAT: Net = Gross ÷ (1 + Rate); VAT Amount = Gross − Net

Worked example: Removing 20% Standard VAT from a £120.00 Receipt

£120.00 retail price with 20% UK VAT included.

  1. Divide gross total by 1.20: £120.00 ÷ 1.20 = £100.00 net price.
  2. Subtract net from gross: £120.00 − £100.00 = £20.00 VAT component.
  3. Verify check: £100.00 net × 20% tax = £20.00 tax, £100 + £20 = £120.00 gross.

Net price is £100.00 and VAT collected is £20.00.

Frequently asked questions

What is the current UK VAT registration threshold?

For the 2024/2026 tax years, UK businesses must register for VAT with HMRC if their taxable turnover exceeds £90,000 over any rolling 12-month period.

How do you remove 20% VAT in your head?

To remove 20% VAT without a calculator, divide the gross amount by 6. For example, £60 divided by 6 is £10 VAT, leaving £50 net.

What items qualify for the 5% reduced rate?

The reduced 5% rate applies to domestic residential gas and electricity, child car seats, mobility aids, and smoking cessation products.

How do I add 20% VAT to a net price?

Multiply the net price by 1.20. For example, £100 net plus 20% VAT gives £120 gross, of which £20 is the VAT element.

Why is removing VAT not the same as taking 20% off the gross price?

Because VAT was charged on the net price, not on the gross price. To remove 20% VAT, divide the gross amount by 1.20: on a £120 gross price the VAT element is £20, which is one-sixth (16.67%) of the gross, not 20% of it.

How do the results map to a VAT return?

The breakdown gives net, VAT, and gross figures you can copy into bookkeeping software or a VAT return (Boxes 1 and 4). The calculator does not submit anything to HMRC.