VAT Calculator UK
Add or remove VAT instantly — updated for 2026/27
Using 2026/27 figures
0% is not shown — there is no VAT to remove.
Under HMRC’s Flat Rate Scheme (FRS), you charge customers the standard VAT rate but pay HMRC a fixed percentage of your gross turnover instead. This can simplify your accounting and sometimes saves money.
VAT registration thresholds
You must register for VAT when your taxable turnover exceeds £90,000 in any rolling 12-month period (2026/27).
The deregistration threshold is £88,000.
You can register voluntarily below the threshold.
This calculator is for guidance only and does not constitute tax
advice. Always verify figures with HMRC or a qualified accountant.
Rates shown are for 2026/27 —
check gov.uk for the latest rates.
Flat Rate figures are industry averages for illustration; your
business must meet scheme rules.
Want HMRC to receive your VAT returns automatically? FreeAgent connects directly to HMRC and handles your VAT filing.
Try FreeAgent free for 30 days →Common questions
How do I add VAT to a price?
Multiply the net price by 1.20 for the standard 20% rate. Example: £500 × 1.20 = £600 (£100 VAT). For the 5% rate, multiply by 1.05.
How do I remove VAT from a price?
Divide the gross price by 1.20 for standard rate. Example: £1,200 ÷ 1.20 = £1,000 (VAT was £200). Do not subtract 20% directly — that gives the wrong answer.
What is the VAT registration threshold in 2026/27?
£90,000 rolling 12-month turnover. The deregistration threshold is £88,000. These figures are pulled automatically from our config and updated each tax year.
What is the Flat Rate Scheme?
HMRC’s Flat Rate Scheme lets eligible businesses pay a single fixed percentage of gross turnover as VAT, instead of accounting for VAT on each transaction. Rates vary by industry (7%–16.5%).
What is a limited cost trader?
A business on the Flat Rate Scheme whose goods cost less than 2% of their turnover or less than £1,000 per year. Limited cost traders must use the 16.5% flat rate.