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UK VAT Calculator 2026/27

The definitive tool for business owners and consumers. Instantly **add or remove VAT** from any amount using standard UK rates (20%, 5%, and 0%). Accurate, fast, and fully updated for the current tax year.

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VAT Summary

Your estimated VAT position for the period.

VAT Due to HMRC

£180.00

Output VAT (on sales)

£200.00

Input VAT (on purchases)

-£20.00

How to Calculate VAT Manually

Understanding the math behind Value Added Tax is vital for accurate accounting and invoicing. Here are the two core formulas used by our tool:

Adding VAT (Net to Gross)

Multiply your net amount by (1 + VAT rate). For 20% VAT: **Net x 1.20**.

Removing VAT (Gross to Net)

Divide your gross amount by (1 + VAT rate). For 20% VAT: **Gross ÷ 1.20**.

For more complex scenarios involving historical rates or specific exemptions, you can also refer to external resources like Calculate VAT UK for alternative calculation methods.

Current UK VAT Rates

Standard Rate20%
Reduced Rate5%
Zero Rate0%

*Different rates apply specifically to items like children's car seats (5%) and most food or publications (0%).

VAT Registration

You must register for VAT if your taxable turnover exceeds **£90,000** over any 12-month period.

Voluntary registration is possible even if your turnover is lower, which can be beneficial if you sell mostly to other VAT-registered businesses.

Flat Rate Scheme

Designed for small businesses with turnover under **£150,000**. You pay a fixed percentage to HMRC based on your industry.

While you can't reclaim input VAT on most purchases, it simplifies bookkeeping significantly.

Payment Deadlines

VAT returns are typically submitted every 3 months. Payment is due **1 month and 7 days** after the end of the VAT period.

Late payments incur significant surcharge penalties ranging from 2% to 15% of the tax due.

VAT Calculation Mastery FAQ