VAT · UK · HMRC rates

VAT calculator — add or remove.

Type any price. Get the net, VAT and gross instantly at 20% standard, 5% reduced or 0% zero rate.

HMRC VAT Notice 700 · Free · No signup
VAT rate
Net
£100.00
VAT (20%)
£20.00
Gross
£120.00

VAT is calculated using HMRC-published rates. For business use, always verify against your VAT return — input VAT recovery, partial exemption, margin schemes and reverse-charge rules may apply.

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How it works

Standard rate · 20%

Applies to most goods and services in the UK. Adult clothing, furniture, restaurant meals, alcohol, tobacco and most household items are charged at 20%.

Reduced rate · 5%

Applies to domestic fuel and power, children's car seats, mobility aids for older people, smoking-cessation products, and energy-saving materials installed in residential accommodation.

Zero rate · 0%

Most food (not catering, alcoholic drinks, confectionery or hot takeaways), books, newspapers, children's clothing and shoes, public transport, and prescriptions are zero-rated — VAT-registered, but at 0%.

Exempt vs zero

Different things. Exempt supplies (financial services, insurance, postal services) are entirely outside VAT. Zero-rated supplies are VAT-able but at 0% — the supplier can still reclaim input VAT.

Registration threshold

A business must register for VAT once taxable turnover exceeds £90,000 in any 12-month rolling period (HMRC, from 1 April 2024). Below that, registration is voluntary.

Quick math

Adding 20%: multiply net by 1.20. Removing 20%: divide gross by 1.20 (not multiply by 0.80 — common mistake). The VAT element of a £120 gross at 20% is £20, not £24.