Add VAT Your amount excludes VAT
Remove VAT Your amount includes VAT
How to add VAT
To add VAT to a net (VAT-exclusive) price, multiply it by 1 plus the VAT rate. At the standard rate of 20% that means multiplying by 1.2, so £100 plus VAT is £120. At the reduced rate of 5%, multiply by 1.05.
How to remove VAT
To take VAT off a gross (VAT-inclusive) price, divide it by 1 plus the VAT rate. At 20% that means dividing by 1.2, so £120 including VAT is £100 before VAT. Taking 20% off the gross price gives the wrong answer: 20% of £120 is £24, not the £20 of VAT it contains.
A shortcut for the VAT inside a gross price is the VAT fraction. At 20% the VAT is one sixth of the gross amount; at 5% it is one twenty-first.
UK VAT rates
- Standard rate, 20% – most goods and services.
- Reduced rate, 5% – for example domestic gas and electricity and children's car seats.
- Zero rate, 0% – for example most food, books and children's clothes.
Flat Rate Scheme
Small businesses can pay HMRC a fixed percentage of their turnover instead. Use the VAT Flat Rate Scheme calculator to compare it with standard VAT accounting for your type of business.
Need to file a VAT return?
Tax Optimiser submits Making Tax Digital VAT returns to HMRC straight from your Excel spreadsheet or bookkeeping software.
MTD VAT filing