Free UK VAT Calculator 2026
Quickly calculate VAT additions and deductions (reverse VAT) for your business invoices. Accurately find net and gross prices instantly using current HMRC rates.
Gross Total
£0.00
Understanding VAT Requirements
Essential information for business owners and contractors.
Who needs to register?
You must register for VAT if your taxable turnover exceeds £90,000 in a 12-month period. Voluntary registration is also possible for businesses below this threshold.
Learn moreVAT Schemes
Compare Flat Rate vs Standard schemes. The Flat Rate scheme allows small businesses to pay a fixed percentage of turnover, simplifying bookkeeping significant.
Compare schemesMTD Requirements
Making Tax Digital (MTD) is now mandatory for almost all VAT-registered businesses. You must keep digital records and use MTD-compatible software for returns.
Check complianceManaging VAT shouldn't be a headache
From registration to quarterly submissions, AJH Accountants provides end-to-end VAT management for modern businesses.
"Switching to AJH for our VAT management was the best decision we made this year. No more late filings or errors."
- Sarah Jenkins, Retail Director
What is VAT (Value Added Tax)?
Value Added Tax (VAT) is a consumption tax placed on a product or service whenever value is added at each stage of the supply chain, from production to the point of sale. In the UK, businesses with a VAT-taxable turnover above £90,000 must register for VAT with HMRC and charge it to their customers.
How to calculate VAT manually: To add VAT to a net amount (standard rate 20%), multiply the net figure by 1.20 to get the gross. To extract (reverse calculate) VAT from a gross amount, divide the gross figure by 1.20 to reveal the net price.
Understanding how to manage output tax (what you charge) and input tax (what you reclaim on business expenses) is critical to maintaining a healthy cash flow. If you require assistance with Making Tax Digital (MTD), professional VAT Return Accountants can automate the entire process for you.
Frequently Asked Questions
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Book a free 15-minute consultation with our tax experts today.
An estimate, not a tax calculation
These figures use 2026/27 rates for England and Northern Ireland and only the details you have typed in. Scotland and Wales set some of their own rates, and allowances, reliefs, other income and your tax code can all change the answer considerably.
We check the rates behind these tools against GOV.UK and believe them correct to the best of our knowledge, but we cannot guarantee the result is accurate for your circumstances and do not accept responsibility for decisions made on it. Please do not file a return or commit to anything on this figure alone — do your own research, and speak to a qualified accountant who can see your full position.
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