Free VAT calculator for UK sole traders. Add VAT to a price or take it out. No sign-up needed.
For guidance only. Check current rates and rules on GOV.UK.
A simple app for UK sole traders to handle paperwork without the spreadsheet mess.
VAT (Value Added Tax) is a tax added to the price of most goods and services sold in the UK. A VAT-registered business charges VAT on its sales and shows it separately on its invoices.
The standard rate of VAT is 20% and applies to most goods and services. A reduced rate of 5% applies to some items, such as domestic fuel and power and certain energy-saving installations. Some goods and services are zero-rated at 0%, which means VAT is charged at a rate of nothing rather than not applying at all.
To add VAT to a net price, multiply it by the rate. For example, at 20%, £100 excluding VAT becomes £120 including VAT, of which £20 is VAT.
To remove VAT from a gross price, divide the amount by 1 plus the rate. At 20%, divide by 1.2: £120 including VAT is £100 excluding VAT. Simply taking 20% off the gross amount gives the wrong answer — £120 minus 20% is £96, not £100.