VAT Calculator 2026/27
Calculate UK VAT instantly. Add VAT to a net amount or remove VAT from a gross price. Supports standard (20%), reduced (5%), and zero (0%) rates. Updated for 2026/27.
Calculate the VAT-inclusive price from a net amount
Net Amount
£1,000
Gross Amount
£1,200
Calculation Methodology
This calculator uses the standard UK VAT formulas. To add VAT: Net × (1 + VAT rate). To remove VAT: Gross ÷ (1 + VAT rate). Rates are based on current HMRC guidelines and reviewed by a qualified ICAEW-regulated accountant.
Official Sources
Important: Results are estimates based on standard HMRC rules. Your actual tax may differ based on your specific tax code, benefits, or HMRC adjustments. Always verify with your employer or a qualified accountant.
Frequently Asked Questions
What is the current UK VAT rate for 2026/27?
The standard UK VAT rate for 2026/27 is 20%. This applies to most goods and services. There is also a reduced rate of 5% for certain items like home energy, child car seats, and some energy-saving materials. Some goods and services are zero-rated (0%) including most food, children's clothing, and books.
How do I calculate VAT from a gross amount?
To extract VAT from a gross (VAT-inclusive) amount at the standard 20% rate, divide the gross amount by 1.20 to get the net amount. The VAT is the difference between gross and net. For example, if the gross is £120, the net is £100 (120 ÷ 1.20) and the VAT is £20.
What is the VAT registration threshold in 2026/27?
The VAT registration threshold for 2026/27 is £90,000. If your taxable turnover exceeds this amount in any 12-month period, you must register for VAT with HMRC. You can also voluntarily register if your turnover is below this threshold.
What goods and services are VAT exempt?
VAT exempt items include insurance, finance and credit, education, health services by registered practitioners, postal services by Royal Mail, and certain land transactions. Note that exempt is different from zero-rated - exempt businesses cannot reclaim VAT on their purchases.
How often do I need to submit a VAT return?
Most VAT-registered businesses submit VAT returns quarterly. Returns must be submitted and payment made within one month and 7 days of the end of each VAT period. Some businesses may be able to use annual accounting, which allows one VAT return per year.