VAT calculator
Add VAT to a price, or take it off a total, at the standard 20%, reduced 5% or zero rate. Works instantly, nothing is sent anywhere.
Your figures
Result
How the VAT calculator works
To add VAT, the calculator multiplies the net amount by the VAT rate and adds it on. £250 plus 20% VAT is £250 + £50 = £300.
To remove VAT from a VAT-inclusive total, it divides by 1 plus the rate. For 20% VAT that means dividing by 1.2, so £300 including VAT is £250 before VAT and £50 of VAT. A common mistake is to take 20% off the total, which gives £240, the wrong answer.
Which VAT rate applies?
- 20% standard rate covers most goods and services, including most repair, maintenance and building work.
- 5% reduced rate applies to some supplies, such as certain energy-saving materials and some residential conversions, under specific conditions.
- 0% zero rate applies to some goods and services, such as building new homes in some circumstances.
The rules for building work are detailed, so check HMRC's guidance on GOV.UK before you choose a rate for a job. If you are not VAT registered, you do not charge VAT at all. Our guide to invoicing as a sole trader explains what a VAT invoice must show.
Questions and answers
How do I remove 20% VAT from a price?
Divide the VAT-inclusive price by 1.2. For example, £120 including VAT is £100 before VAT and £20 of VAT.
How do I add VAT to a price?
Multiply the net price by 1.2 for 20% VAT or 1.05 for 5% VAT.
Do I have to charge VAT?
Only if you are VAT registered. Registration is required once taxable turnover passes the VAT threshold. Check GOV.UK for the current figure.
Related guides
How to invoice as a UK sole trader
What has to be on the invoice, what helps you get paid faster, and the mistakes that cause awkward conversations with customers and HMRC.
Tax and VATMaking Tax Digital for tradespeople
MTD for VAT has been around for years. MTD for Income Tax is now arriving for sole traders. Here is what it means for a trade business, in plain English.
Tax and VATCIS and the domestic reverse charge explained
Two sets of rules that confuse almost every builder, electrician and plumber who works for contractors. Here is how they fit together, with worked examples.
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