VAT Calculator
Add VAT to a net figure, or strip VAT out of a gross one. Standard, reduced and zero rates.
- Net (excluding VAT)
- £1,000.00
- VAT
- £200.00
- Gross (including VAT)
- £1,200.00
Figures update as you type. Rounded to the nearest penny.
How the arithmetic works
Adding VAT is straightforward: multiply the net figure by 1.20 for the standard rate. Removing it is where people go wrong. You cannot take 20% off a gross figure — you divide by 1.20 instead.
A £1,200 gross invoice contains £200 of VAT, not £240. Taking 20% off £1,200 gives £960, which is wrong by £40. The error compounds quickly across a quarter’s purchases.
To strip VAT from a gross amount, divide by 1.2 — never subtract 20%.
A caution about the flat rate scheme
If your business is on the VAT Flat Rate Scheme, this calculator still tells you what to charge your customer, but it will not tell you what you owe HMRC. Under that scheme you charge VAT normally and then pay HMRC a fixed percentage of your gross turnover, which varies by trade sector. The two figures are different, and the difference is what you keep.
If you are unsure which scheme suits your business, or whether you should be registered at all, our VAT service covers it, or you can speak to us.
Rates correct for the 2026/27 tax year. Next review April 2027.
This calculator gives a general estimate and is not a substitute for advice on your own circumstances. VAT treatment depends on what you supply, to whom and where.