UK VAT Calculator
Quickly add or remove Value Added Tax from a price. Works for the 20%, 5%, and 0% rates.
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
What is VAT?
Value Added Tax (VAT) is a tax applied to most goods and services sold by VAT-registered businesses in the UK. When a business is VAT-registered, it charges VAT to its customers (output VAT) and pays VAT on its own purchases (input VAT). The business then pays the difference to HMRC, or reclaims it if they've paid more than they've charged.
Current VAT Rates
Standard Rate - 20%
This is the most common rate and applies to most goods and services, such as electronics, adult clothing, and restaurant meals.
Reduced Rate - 5%
This rate applies to some goods and services, for example, home energy, children's car seats, and mobility aids.
Zero Rate - 0%
Zero-rated means the goods are still VAT-taxable, but the rate is 0%. This includes most food, books, and children's clothing.
The Flat Rate VAT Scheme
A simpler way for small businesses to handle VAT.
The Flat Rate Scheme allows you to pay a fixed percentage of your turnover to HMRC. You still charge the standard 20% on your invoices, but the amount you pay back is lower. This is to compensate you for not being able to reclaim VAT on purchases. It's designed for businesses with a turnover of £150,000 or less.
Struggling to Pay Your VAT Bill?
HMRC has options if you're facing difficulties.
If you cannot afford to pay your VAT bill on time, it's crucial to contact HMRC as soon as possible. You may be able to set up a 'Time to Pay' arrangement, which allows you to spread the cost over several months. Ignoring the problem will lead to penalties and interest charges.