UK VAT · 2025-26
VAT Calculator (UK 2025-26)
Add VAT to a net price or strip VAT out of a gross price. 20%, 5%, or 0%. The way HMRC actually does it — divide-by-1.20, not subtract-20%.
Related calculators
Common questions
- What's the UK VAT registration threshold?
- £90,000 of taxable turnover in any rolling 12 months from April 2024 (raised from £85k). Once you cross it you have 30 days to register. Voluntary registration below the threshold is allowed and often worthwhile if your customers are also VAT-registered.
- What are the different VAT rates?
- Standard 20% (most goods/services), reduced 5% (domestic energy, some health products), zero 0% (most food, books, children's clothes, exports). Plus 'exempt' (insurance, finance, education) and 'outside the scope' (wages, dividends) — different beast altogether.
- How do I strip VAT from a gross price?
- Divide gross by 1.20 (for 20%). So £120 inclusive of VAT = £100 net + £20 VAT. Don't subtract 20% from the gross — that gives the wrong answer (£24 not £20). The calc here does it correctly.
- Should I be on flat-rate or standard scheme?
- Flat-rate is simpler — fixed % on gross sales, no input VAT to track. Standard lets you reclaim VAT on purchases. If you have meaningful VAT-able expenses (especially capital), standard usually wins. This particular calc handles the standard method.
- What is the VAT 9-box return?
- Nine fields HMRC asks every quarter: VAT charged on sales (boxes 1-3), VAT reclaimed on purchases (box 4), net VAT due (box 5), and turnover figures (boxes 6-9). BahiKhata builds the 9-box automatically from your transactions if you sign up.