Unlike generic VAT tools, this calculator is built specifically for UK HMRC rules and post-Brexit VAT scenarios — giving you accurate results in seconds.
Enter any amount to calculate VAT instantly using HMRC 2026 rates
Specialist VAT tools built for UK businesses, freelancers, and importers — all free, all HMRC-compliant.
HMRC's Making Tax Digital (MTD) requires compatible software. Try these UK-trusted options.
Our calculator uses the exact HMRC formulas — no rounding tricks, no estimation.
HMRC Formula — Add VAT
Gross = Net × (1 + VAT rate)
e.g. £1,000 × 1.20 = £1,200
HMRC Formula — Remove VAT
Net = Gross ÷ (1 + VAT rate)
e.g. £1,200 ÷ 1.20 = £1,000
Need to work backwards from a VAT-inclusive price? Use our reverse VAT calculator to remove VAT from any gross amount. For goods entering the UK, try our import VAT calculator which includes post-Brexit customs duty rates.
All rates sourced directly from HMRC GOV.UK. Updated January 2026.
| VAT Rate | Rate Type | Applies To | Example |
|---|---|---|---|
| 20% | Standard rate | Most goods and services | Clothing (adult), electronics, professional services |
| 5% | Reduced rate | Specific goods and services | Home energy, children's car seats, mobility aids |
| 0% | Zero rate | Essential goods | Most food, children's clothing, books, newspapers |
Source: HMRC — VAT rates (GOV.UK). Always verify current rates before filing. See our full UK VAT rates 2026 guide for a complete breakdown of all goods and services.
Common questions about UK VAT — answered clearly using HMRC guidance.
To add 20% UK VAT to a net price, multiply the amount by 1.20 (the official HMRC formula). For example: £1,000 × 1.20 = £1,200 including VAT (the VAT amount is £200).
To remove 20% VAT from a gross price, divide by 1.20. For example: £1,200 ÷ 1.20 = £1,000 excluding VAT. You can also use our reverse VAT calculator to do this automatically.
Our UK VAT calculator applies these HMRC formulas automatically — simply enter your amount above and get an instant breakdown of net, VAT, and gross.
The standard UK VAT rate is 20% and applies to most goods and services sold in the UK. Two other rates also apply:
Source: HMRC VAT rates — GOV.UK. Rates are set by HMRC and reviewed annually.
You must register for VAT with HMRC when your taxable turnover exceeds £90,000 in any rolling 12-month period (2026 threshold). You must register within 30 days of exceeding this threshold.
You can also register voluntarily if your turnover is below this threshold — which can be beneficial if you want to reclaim VAT on business purchases.
Once registered, you must charge VAT on your goods and services and submit regular VAT returns to HMRC, typically quarterly.
A VAT-exclusive price (also called "net" or "ex-VAT") does not include VAT. This is the amount before VAT is added — typically shown on B2B invoices between VAT-registered businesses.
A VAT-inclusive price (also called "gross" or "inc. VAT") already includes VAT — this is the price consumers see in shops and on retail receipts.
Our calculator handles both: use Add VAT to go from net to gross, or Remove VAT to extract the net amount from a gross price.
The HMRC Flat Rate Scheme lets small UK businesses pay a fixed percentage of their gross (VAT-inclusive) turnover as VAT, rather than accounting for the difference between VAT charged and VAT reclaimed.
It's available to businesses with taxable turnover under £150,000. The flat rate percentage varies by business sector — for example, IT consultants pay 14.5%, accountants 14.5%, and general retail 7.5%.
Use our UK Flat Rate VAT Calculator to see your exact payment, or read our Flat Rate Scheme guide for full sector rate tables.
This UK VAT calculator gives accurate figures based on current HMRC 2026 rates and is ideal for quick calculations, creating invoices, estimating VAT on purchases, and checking supplier quotes.
For your formal VAT return submission to HMRC, you are required to use Making Tax Digital (MTD)-compatible accounting software. HMRC-approved options include Xero, FreeAgent, QuickBooks UK, and Sage. New to VAT? Read our What is VAT UK guide for a complete beginner's overview.
HMRC-referenced guides written for UK small business owners, freelancers, and sole traders. No jargon — just clear answers.