Calculator 05 · 2026/27
Add VAT to a net amount, or extract VAT from a gross amount. Works for the standard 20% rate plus reduced 5% (domestic energy, children's car seats) and zero 0% (children's clothes, most food). VAT registration is required above the £90,000 turnover threshold.
VAT-registered and need help with returns? Fernside handles MTD-compliant quarterly VAT returns.
VAT servicesMultiply net amount by (1 + rate/100). For 20% VAT: gross = net × 1.20.
Example: £100 net × 1.20 = £120 gross (with £20 VAT).
Divide gross amount by (1 + rate/100). For 20% VAT: net = gross / 1.20.
Example: £120 gross / 1.20 = £100 net (£20 VAT). The VAT is always the difference between gross and net.
Sometimes you need just the VAT figure from a gross amount. Use:
20% VAT: VAT = gross × 1/6 (or × 0.1667).
5% VAT: VAT = gross × 1/21 (or × 0.0476).
Example: £120 gross at 20% → VAT = £120 / 6 = £20.
The UK VAT registration threshold is £90,000 of taxable turnover in any rolling 12-month period (raised from £85,000 on 1 April 2024). You can also register voluntarily below this if it benefits you (e.g. you mostly serve VAT-registered businesses and want to reclaim input VAT).
These are different! Zero-rated (most food, books, children's clothes) is taxable at 0% — you still appear on VAT returns and can reclaim input VAT. Exempt (insurance, education, healthcare) means no VAT charged AND no input VAT reclaim. Out of scope (most overseas customers) means VAT rules don't apply at all.
If you're approaching the VAT registration threshold, timing matters. Voluntary registration earlier might benefit you, or you might want to delay. Book a 20-minute call and we'll model your specific situation.
Book a free 20-min call£90,000 of taxable turnover in any rolling 12-month period (since 1 April 2024). You must register within 30 days of exceeding the threshold. You can also register voluntarily below this if it benefits you.
Standard rate is 20% (most goods and services). Reduced rate is 5% (domestic fuel/energy, children's car seats, some sanitary products). Zero rate is 0% (most food, books, newspapers, children's clothes, prescription medicine). Some supplies are exempt (insurance, education, healthcare) which is different from zero-rated.
Voluntary registration makes sense if you mostly sell to VAT-registered businesses (they can reclaim the VAT, so your prices effectively stay the same) AND you have significant input VAT to reclaim. It usually doesn't make sense if you sell to consumers (your prices effectively go up 20%).
For 20% VAT: divide the gross by 1.20 to get the net, or multiply the gross by 1/6 (0.1667) to get just the VAT. Example: £120 gross → £20 VAT, £100 net.
Yes. Since April 2022, all VAT-registered businesses must submit returns using MTD-compatible software (Xero, FreeAgent, QuickBooks, etc.). Direct entry into the HMRC portal is no longer accepted. The MTD ITSA rollout (from April 2026) is separate.