UK VAT calculator
Enter an amount and choose whether it already includes VAT. Works at the standard 20% rate, the reduced 5% rate, and zero rate.
To remove VAT from a VAT-inclusive figure you divide by 1.2, not subtract 20%. Construction work is often zero rated or subject to the domestic reverse charge — check the rate that applies before invoicing.
UK VAT rates
- Standard rate, 20% — most goods and services, including most trades work
- Reduced rate, 5% — some energy-saving materials, certain residential conversions and renovations
- Zero rate, 0% — new-build residential construction and certain other supplies
Adding VAT to a net figure
Multiply the net amount by 1.2 for the standard rate. £1,000 net becomes £1,200 gross, with £200 of VAT.
Removing VAT from a gross figure
Divide the gross amount by 1.2 for the standard rate. £1,200 gross becomes £1,000 net, with £200 of VAT. Do not simply take 20% off the gross figure — that gives the wrong answer.
Taking 20% off £1,200 gives £960, which is wrong by £40. Working backwards from a VAT-inclusive figure always means dividing by 1.2, not subtracting 20%.
Construction work is often not standard rated
Trades work is more complicated than most sectors. New-build residential work is frequently zero rated, some renovation work qualifies for 5%, and construction services between VAT-registered businesses under CIS usually fall under the domestic reverse charge, where the customer accounts for the VAT instead of you charging it.
This is a general calculator, not advice on the correct VAT treatment of your job. Check the rate that applies before you invoice.
VAT questions
How do I remove VAT from a total?
Divide the VAT-inclusive amount by 1.2 for the standard 20% rate. Subtracting 20% from the gross figure gives the wrong answer.
What is the current UK VAT rate?
The standard rate is 20%. There is a reduced rate of 5% for certain supplies and a zero rate for others, including most new-build residential construction.
When do I have to register for VAT?
When your VAT-taxable turnover goes over the registration threshold in a rolling twelve-month period, or if you expect it to in the next 30 days. Check the current threshold on gov.uk.
Does the reverse charge change these figures?
Yes. Under the domestic reverse charge you show the VAT for reference but do not add it to the total, and the customer accounts for it themselves.
VAT worked out as you invoice
Set your default rate, flag reverse charge jobs, and let Quill produce a compliant VAT invoice without the mental arithmetic.