VAT · 2026/27 tax year
VAT add or remove calculator UK 2026/27
Add VAT to a net price or extract VAT from a gross price at 20%, 5%, or 0% — instant breakdown of net, VAT, and gross.
Understanding your results
Adding or removing VAT is pure arithmetic, but invoices are legal documents. Rounding rules, line-level vs invoice-level totals, and mixed-rate baskets all create penny differences that banks and clients notice. Use this calculator for sanity checks, then let your accounting software be the source of truth for posted invoices.
Cash accounting and invoice accounting change when VAT hits your return, not how you calculate a rate on a static number. If you are comparing this tool’s output to a VAT return line, make sure you are comparing the same basis — accrual for many smaller businesses on standard schemes unless you elected otherwise.
Retail schemes and margin schemes for second-hand goods deliberately depart from simple 20% on every pound. If those labels apply to you, ignore generic net/gross toggles for those lines and follow the specialist scheme rules instead.
For non-registered readers, remember that “gross” is all you ever see as a consumer; you cannot reclaim VAT you were never charged as output tax. Registered businesses live in both net and gross worlds simultaneously — language discipline on quotes prevents client disputes.
If you are about to register, rehearse how you will quote prices post-registration — exclusive VAT to B2B clients, inclusive messaging to consumers — so this arithmetic lines up with commercial expectations from day one of the new VAT number.
Disclaimer: This is a guidance estimate based on the 2026/27 tax year. It is not personal tax advice — consult an accountant or HMRC for your specific circumstances.
About this calculator
If you are VAT-registered, you need to know two things about every transaction: the amount excluding VAT (the net) and the amount including VAT (the gross). This calculator handles both directions in one click.
To add VAT to a net amount, multiply by 1 plus the VAT rate. So £1,000 net at 20% becomes £1,200 gross (£1,000 + £200 VAT). To remove VAT from a gross amount, divide by 1 plus the VAT rate. So £1,200 gross at 20% gives £1,000 net and £200 VAT.
The standard UK VAT rate is 20% and applies to most goods and services. The reduced rate of 5% applies to things like home energy and children's car seats. The zero rate (0%) applies to most food, books, and children's clothes — the supply is still VAT-able, just at 0%.
Use this calculator when issuing invoices, checking a supplier's bill, or working out the net cost of something you have bought. If you are not VAT-registered, you only ever deal with the gross amount and you cannot reclaim VAT on your purchases.
Frequently asked questions
How do I work out 20% VAT in my head?
To add VAT, divide the net amount by 5 and add it on (e.g. £100 ÷ 5 = £20 VAT, gross £120). To remove VAT from a gross figure, divide by 6 to get the VAT amount (e.g. £120 ÷ 6 = £20 VAT, net £100).
Why are some items zero-rated and some VAT-exempt?
Zero-rated supplies are still VAT-able (at 0%) so the seller can reclaim VAT on related costs. Exempt supplies are outside the VAT system entirely — no VAT is charged or reclaimable. The distinction matters if you are a registered business.
Do sole traders charge VAT?
Only if they are VAT-registered. You must register once your rolling 12-month turnover hits £90,000. Below that, registration is voluntary.
When do I have to issue a VAT invoice?
If you are VAT-registered and selling to another VAT-registered business, you must issue a VAT invoice within 30 days of supplying the goods or service. The invoice must show your VAT number, the rate applied, and the VAT amount.
How often do I have to file a VAT return?
Most VAT-registered sole traders file quarterly. Returns are due one month and seven days after the end of each VAT quarter, and must be submitted using Making Tax Digital-compatible software. The VAT you owe is paid at the same time.
- Source: GOV.UK – Send a VAT Return