Add or remove VAT at United Kingdom's standard rate of 20%. Pre-set to GBP — switch modes to work forwards from a net price or backwards from a VAT-inclusive total.
£500.00 × 1.2 = £600.00
Adding 20% VAT to a laptop priced at £500.00 (net) gives £600.00 gross — that's £100.00 of VAT.
£80.00 ÷ 1.2 = £66.67
Removing 20% VAT from a meal for two marked £80.00 (gross) leaves £66.67 net — the VAT portion is £13.33.
| Rate | Applies to |
|---|---|
| 20% standard | Most goods and services |
| 5% | Domestic fuel & power, children's car seats, energy-saving materials |
| 0% | Most food, books & newspapers, children's clothing, public transport |
Businesses in United Kingdom generally must register for VAT once taxable turnover reaches £90,000 annual turnover. VAT registration and returns are administered by HM Revenue & Customs (HMRC).
The standard VAT rate in United Kingdom is 20%. Reduced rates of 5%, 0% apply to items such as domestic fuel & power, children's car seats, energy-saving materials. (Rates as of 2026-07-13.)
Divide the VAT-inclusive price by 1.2 (that is, 1 + 20%). Removing 20% VAT from a meal for two marked £80.00 (gross) leaves £66.67 net — the VAT portion is £13.33.
Multiply the net price by 1.2. Adding 20% VAT to a laptop priced at £500.00 (net) gives £600.00 gross — that's £100.00 of VAT.
You must register for VAT in United Kingdom once your taxable turnover reaches £90,000 annual turnover. Registration is handled by HM Revenue & Customs (HMRC).
Rates and thresholds shown as of 2026-07-13. Tax rules change — confirm current figures with HM Revenue & Customs (HMRC) before relying on them.