VAT Calculator 2024/25

VAT, or Value Added Tax, is a tax added to most goods and services in the UK. Businesses and freelancers often need to calculate it, but doing it manually can be time-consuming and prone to mistakes. That's where our VAT Calculator comes in—it handles the math for you in seconds.

Whether you're a business owner working out prices or an individual checking your bills, our tool makes it simple. You can use it to add VAT to a price or remove VAT to find the original amount.

What is a VAT Calculator

A VAT calculator is a simple tool that helps you calculate Value Added Tax (VAT) on goods or services. It allows you to either:

1. Add VAT to a price: If you know the original price of a product or service before tax, the calculator will add the VAT (usually 20% in the UK) to give you the total price including tax.
2. Remove VAT from a price: If you know the total price including VAT, the calculator will help you figure out the price before VAT was added.

How to Use Our VAT Calculator UK

Using the VAT Calculator is simple and quick. Just follow these easy steps:

1. Enter the VAT Rate: The default VAT rate is set to 20%, which is the standard rate in the UK. If you're using a different VAT rate, you can easily change it by entering your desired percentage.
2. Input the Value: Enter the amount you want to calculate VAT on. This could be the price of a product or service, either with or without VAT included.

Once you’ve entered these details, the calculator instantly provides two sets of results:

1. VAT Included
   • Value before VAT added: This is the original price of the item or service before any VAT is applied.
   • VAT included amount: This shows the amount of VAT added.
2. VAT Excluded
   • Value after VAT added: This is the price that includes VAT, but it shows how much the item or service costs after removing VAT.
   • VAT excluded amount: This provides the total amount of VAT excluded from the original price.

Examples of When VAT Needs to be Added or Removed

• Adding VAT: If a business sells a product for £100 and the VAT rate is 20%, the total cost will be £120. The business adds £20 as VAT.
• Removing VAT: If a product’s price is £120 including VAT and you want to know the price before VAT, you need to remove the VAT. In this case, you would find that the price before VAT is £100.

UK VAT Rates 2024/2025

• Standard Rate (20%): This is the most common VAT rate and applies to most goods and services.
• Reduced Rate (5%): Some items, like home energy or certain children's clothing, have a reduced VAT rate of 5%.
• Zero Rate (0%): Certain items, such as basic food items and books, are zero-rated. This means they don’t have VAT added, but businesses can still reclaim VAT on their costs related to these items.

Why Use Our VAT Tax Calculator?

Our VAT Calculator offers a range of benefits that make it the perfect tool for anyone needing to calculate VAT quickly and accurately. Here’s why you should use it:

1. Speed: Manually calculating VAT can take time, especially when you’re in a hurry. Our VAT Calculator gives you results instantly, saving you precious time. Just select the VAT rate, enter the value and get the calculated VAT in seconds.
2. Accuracy: Our VAT Calculator provides quick and accurate results every time. You don’t need to worry about mistakes or guesswork. Just enter your numbers, and our tool will do the math for you. Whether you’re adding or removing VAT, the results are always spot on.
3. Ease of Use: You don’t need to be an accountant to use our VAT Calculator. It’s designed to be simple and straightforward, so anyone can use it—whether you’re a small business owner, freelancer, or contractor.
4. Free and Accessible: Our VAT Calculator is completely free to use. You can access it from anywhere, at any time. Whether you’re at home, at work, or on the go, the tool is always available whenever you need it.
5. Optimized for Business Owners: This tool is perfect for small businesses, freelancers, and contractors who need to calculate VAT regularly. Whether you’re pricing products, creating invoices, or just checking costs, our UK VAT Calculator is an essential tool for your business.

Workout Your VAT with Ease

Try our VAT Calculator today to simplify your business accounting. Whether you're running a business, freelancing, or just managing your own purchases, our tool will save you time and ensure you get accurate results every time.

Bookmark this page so you can quickly access it whenever you need to calculate VAT. It’s free, fast, and easy to use!

If you need more personalised advice, why not book a free consultation with our expert accountants? We’re here to help with all your accounting and VAT needs!

FAQs on VAT Calculator UK

What is the current VAT rate in the UK?

The standard VAT rate in the UK is 20%, which applies to most goods and services. However, some items qualify for a reduced rate of 5%, like home energy or certain health products. Other items, such as most food and children's clothing, are taxed at a 0% rate.

Can I use this calculator for other VAT rates?

Yes! You can use the VAT Calculator for different rates. The default is set to 20%, but you can easily change it to the 5% reduced rate or the 0% rate, depending on your needs.

How do I work out 20% VAT on a price?

To work out 20% VAT on a price, multiply the original amount by 0.20. For example, if the price is £100, the VAT would be £20.

How do you take VAT off an amount?

To take VAT off an amount or to make a reverse VAT calculation, divide the total by 1.20 (for 20% VAT). For example, if the total is £120, dividing by 1.20 gives £100 (the amount without VAT).

Do you get money back from a VAT return?

Yes, if your business has paid more VAT on purchases than it collected from sales, you can claim the difference back from HMRC through a VAT return. HMRC usually processes repayments within 30 days after receiving your VAT Return.

What is VAT registration threshold for 2024/25 tax year?

For the 2024/25 tax year, the VAT registration threshold in the UK is £90,000. This means that if your business’s taxable turnover exceeds £90,000 in a 12-month period, you are required to register for VAT with HMRC.