By GoForma — ACCA and AAT qualified accountants Last reviewed Uses HMRC 2025/26 rates
2025/26 Tax Year

VAT Calculator 2024/25

Quickly and accurately calculate VAT with our Free VAT Calculator

Use the calculator How it works
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Key takeaways

  • The standard VAT rate in the UK is 20% for 2025/26. To add VAT: multiply the net by 1.2. To remove VAT from a gross figure: divide by 1.2 (not by 0.2).
  • The reduced rate is 5% and applies to domestic fuel, children's car seats, and certain energy-saving materials. The zero rate (0%) applies to food, children's clothing, and books.
  • VAT-registered businesses charge output VAT on sales and reclaim input VAT on purchases. The difference — net VAT — is paid to or reclaimed from HMRC each quarter.
  • If you are not VAT-registered, you cannot charge VAT and cannot reclaim input VAT. Quoting VAT-inclusive prices to consumers and VAT-exclusive prices to B2B clients is standard practice.
  • Rounding: HMRC allows VAT to be rounded down to the nearest penny per invoice. Cumulative rounding methods should not be used.
How it works

Three inputs, one clear answer

1

Enter the amount

Input either the net (ex-VAT) or gross (inc-VAT) amount depending on what you are starting from.

2

Choose add or remove VAT

Select whether you want to add 20% VAT to a net figure or strip VAT from a gross amount.

3

See the result

The calculator shows the net amount, VAT element, and gross amount alongside the correct formula used.

This calculator adds or removes 20% UK VAT from any amount for 2025/26, and explains the correct formula for each direction.

Adding VAT to a net price

To add 20% VAT: multiply the net (ex-VAT) price by 1.2. Example: £100 net × 1.2 = £120 gross. The VAT element is £20.

Removing VAT from a gross price

To remove VAT from a gross (VAT-inclusive) price: divide by 1.2. A common mistake is multiplying by 0.8 or subtracting 20% — both give the wrong answer. Example: £120 gross ÷ 1.2 = £100 net.

UK VAT rates for 2025/26

Standard rate: 20%. Reduced rate: 5% (domestic fuel, children's car seats). Zero rate: 0% (food, books, children's clothing). Exempt supplies (financial services, education) do not carry VAT at all.

Output VAT vs input VAT

VAT-registered businesses collect output VAT from customers and pay input VAT to suppliers. Each quarter you calculate the difference and pay the net amount to HMRC (or claim a refund if input exceeds output).

VAT on invoices

VAT invoices must show: your VAT registration number, the rate applied, the net amount, the VAT amount, and the gross amount. Without a valid VAT invoice, your customer cannot reclaim the input VAT.

Who it's for

Made for UK self-employed workers

VAT-registered businesses

Businesses that need to quickly calculate the VAT element of invoices or check a supplier's gross price against the expected net.

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Freelancers and sole traders

Self-employed people who invoice B2B clients and need to confirm the correct VAT-inclusive price to quote or add to an invoice.

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Bookkeepers and finance teams

Finance professionals reconciling VAT on invoices or checking gross-to-net calculations when processing supplier payments.

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Non-registered businesses

Businesses below the VAT threshold who want to understand how much of a quoted price is VAT before deciding whether to register.

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Questions answered

Frequently asked questions

What is the standard VAT rate in the UK for 2025/26?

The standard VAT rate is 20%. The reduced rate is 5% and the zero rate is 0%. Exempt supplies are outside the VAT system entirely.

How do I add VAT to a price?

Multiply the net (ex-VAT) price by 1.2. For example, £100 × 1.2 = £120.

How do I remove VAT from a price?

Divide the gross (VAT-inclusive) price by 1.2. Do not subtract 20% — that gives the wrong answer. £120 ÷ 1.2 = £100.

Can I reclaim VAT on purchases if I am not VAT-registered?

No. Input VAT can only be reclaimed by VAT-registered businesses with a valid VAT invoice from the supplier.

Do I have to charge VAT if I am not registered?

No. Only VAT-registered businesses can charge VAT. Charging VAT without being registered is a criminal offence.

Get a free consultation with a qualified accountant

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This calculator provides estimates for the 2025/26 UK tax year (England, Wales & Northern Ireland). Actual tax liability depends on your full circumstances. For tailored advice, with an ACCA or AAT qualified accountant.