Tax & HMRC
⏱ 3 min read
📅 Updated May 2026
UK VAT Calculator 2026: Add or Remove VAT Instantly
UK VAT calculator 2026 — standard rate 20%, reduced rate 5%. Registration threshold £90,000.
⚡ UK VAT Calculator 2026 — Updated April 2026
Standard VAT rate: 20% | Reduced rate: 5% | Zero rate: 0% | VAT registration threshold: £90,000/year | Use the tables below to calculate VAT quickly. |
VAT (Value Added Tax) is charged at 20% on most goods and services in the UK. Some items are charged at 5% (reduced rate) or 0% (zero rate). If your business turnover exceeds £90,000/year, you must register for VAT. How to Calculate VAT UK| Calculation | Formula | Example (£100) |
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| Add 20% VAT to a price | Price × 1.20 | £100 × 1.20 = £120 | | Remove 20% VAT from a price | Price ÷ 1.20 | £120 ÷ 1.20 = £100 | | Calculate 20% VAT amount only | Price × 0.20 | £100 × 0.20 = £20 | | Add 5% VAT to a price | Price × 1.05 | £100 × 1.05 = £105 | | Remove 5% VAT from a price | Price ÷ 1.05 | £105 ÷ 1.05 = £100 |
UK VAT Rate Quick Reference 2026| VAT Rate | Rate | Examples |
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| Standard rate | 20% | Most goods and services, electronics, clothing (adult), alcohol, restaurants | | Reduced rate | 5% | Home energy, children's car seats, mobility aids, some renovations | | Zero rate | 0% | Food (most), children's clothing, books, newspapers, prescription drugs | | Exempt | N/A | Financial services, insurance, education, health services |
VAT Quick Reference Table — 20% Standard Rate| Net (ex VAT) | VAT (20%) | Gross (inc VAT) |
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| £10 | £2.00 | £12.00 | | £25 | £5.00 | £30.00 | | £50 | £10.00 | £60.00 | | £100 | £20.00 | £120.00 | | £250 | £50.00 | £300.00 | | £500 | £100.00 | £600.00 | | £1,000 | £200.00 | £1,200.00 | | £5,000 | £1,000.00 | £6,000.00 | | £10,000 | £2,000.00 | £12,000.00 |
VAT Registration Rules UK 2026| Rule | Threshold/Requirement |
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| Compulsory registration | Taxable turnover exceeds £90,000 in any 12-month period | | Voluntary registration | Any business can register voluntarily below £90,000 | | Deregistration threshold | If turnover falls below £88,000, you can deregister | | Registration deadline | Must register within 30 days of exceeding the threshold | | Penalty for late registration | HMRC can charge a percentage of VAT owed from the date you should have registered |
| ⚠️ The VAT registration threshold has been £90,000 since April 2024. Once registered, you must charge VAT on all standard-rated and reduced-rated sales, submit quarterly VAT returns via Making Tax Digital (MTD), and pay VAT to HMRC. |
What is the VAT rate in the UK in 2026?The standard VAT rate is 20%. A reduced rate of 5% applies to domestic energy, children's car seats, and some other items. A zero rate (0%) applies to most food, children's clothing, books, and newspapers. What is the VAT registration threshold in the UK?The VAT registration threshold is £90,000 of taxable turnover in any rolling 12-month period (from April 2024). If your turnover exceeds this, you must register for VAT within 30 days. How do I calculate VAT from a gross price?To find the net price from a gross (VAT-inclusive) price at 20%: divide by 1.20. Example: £120 ÷ 1.20 = £100 net. The VAT amount is £120 − £100 = £20. Should I register for VAT voluntarily?Voluntary registration makes sense if your customers are VAT-registered businesses (who can reclaim VAT), or if you have significant VAT on business purchases you want to reclaim. It adds administrative burden (quarterly MTD returns) — weigh this against the benefits. Sources: HMRC VAT rates — GOV.UK · HMRC VAT registration — GOV.UK · HMRC Making Tax Digital for VAT · Citizens Advice VAT guide |
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Editorial Disclaimer
The content on Kaeltripton.com is for informational and educational purposes only and does not constitute financial, investment, tax, legal or regulatory advice. Kaeltripton.com is not authorised or regulated by the Financial Conduct Authority (FCA) and is not a financial adviser, mortgage broker, insurance intermediary or investment firm. Nothing on this site should be construed as a personal recommendation. Rates, figures and product details are indicative only, subject to change without notice, and should always be verified directly with the relevant provider, HMRC, the FCA register, the Bank of England, Ofgem or other appropriate authority before any financial decision is made. Past performance is not a reliable indicator of future results. If you require regulated financial advice, please consult a qualified adviser authorised by the FCA.
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Chandraketu Tripathi
Finance Editor · Kaeltripton.com
Chandraketu (CK) Tripathi, founder and lead editor of Kael Tripton. 22 years in finance and marketing across 23 markets. Writes on UK personal finance, tax, mortgages, insurance, energy, and investing. Sources: HMRC, FCA, Ofgem, BoE, ONS.
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