VAT Calculator

Add or remove UK VAT at 20% (or 5% / 0%), and compare the VAT Flat Rate Scheme against standard VAT, including the 16.5% limited-cost-trader rate.

Do I need to register for VAT?

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Add or remove VAT

Amount£1,000

Direction

VAT rate

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Gross (including VAT)

£1,200

Net (excluding VAT)

£1,000

VAT at 20%

£200

Flat Rate Scheme vs standard VAT

Enter your VAT-inclusive annual turnover and your sector flat rate to see the VAT you would hand over under the Flat Rate Scheme.

Annual turnover (inc VAT)£85,000

Flat rate %17%

VAT due under the Flat Rate Scheme

£14,025

If your goods cost less than 2% of turnover (or under £1,000 a year), you are a "limited cost trader" and must use the 16.5% rate, which usually wipes out the scheme's benefit. Check your sector rate before joining.

When must I register for VAT?

You must register once your VAT-taxable turnover passes £90,000 in any rolling 12 months, or if you expect to pass it in the next 30 days. It is a registration trigger, not a tax-free band: once registered you charge VAT on everything, not just the amount above the threshold.

Frequently asked questions

How do I add 20% VAT to a price?

Multiply the net price by 1.20. For example, GBP 1,000 plus 20% VAT is GBP 1,200, of which GBP 200 is VAT. This calculator does it both ways: adding VAT to a net figure, or stripping VAT out of a VAT-inclusive (gross) figure.

How do I remove VAT from a gross amount?

Divide the gross amount by 1.20 (for 20% VAT) to get the net figure; the difference is the VAT. GBP 1,200 gross divided by 1.20 is GBP 1,000 net, so the VAT is GBP 200. Do not just take 20% off the gross - that gives the wrong answer.

When do I have to register for VAT?

You must register once your VAT-taxable turnover passes GBP 90,000 in any rolling 12-month period, or if you expect to pass it in the next 30 days. The threshold is a registration trigger, not a tax-free allowance: once registered you charge VAT on all your taxable sales.

Is the VAT Flat Rate Scheme worth it?

It can simplify your VAT and occasionally save money, but since 2017 most low-spend service businesses are classed as "limited cost traders" and must use the 16.5% rate, which usually removes any benefit. Run your sector rate through the comparison above before joining.

VAT Calculator

Add or remove VAT

Flat Rate Scheme vs standard VAT

When must I register for VAT?

Frequently asked questions

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