UK VAT Calculator 2026 | Add or Remove 20% VAT

UK VAT Calculator 2026: Add or Remove VAT Instantly

UK VAT calculator 2026 — standard rate 20%, reduced rate 5%. Registration threshold £90,000.

Chandraketu Tripathi

Finance Editor, Kaeltripton

Published 8 Apr 2026

Last reviewed 14 May 2026

✓ Fact-checked

⚡ 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)
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
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)
£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
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.