VAT calculator
Estimate onlyAdd VAT to a net figure, or remove it from a gross figure — dividing correctly rather than subtracting a percentage.
Tax year 2025/26 · rules last reviewed 22 August 2026 · engine v1.0.0 · calculated 16 October 2026
Gross total including VAT
£1,200.00
VAT at 20% is £200.00
Breakdown
To remove 20% VAT, divide the gross amount by 1.20. Subtracting 20% from the gross figure gives the wrong answer.
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How this calculator works
- Adding VAT multiplies the net amount by the rate and adds it on.
- Removing VAT divides the gross amount by 1 plus the rate — subtracting the percentage would be wrong.
- The net, VAT and gross figures are always shown together so the arithmetic is checkable.
Assumptions
- The rate you select is assumed to be the correct rate for the supply.
- Figures are for a single amount, not a full VAT return.
- You are aged under State Pension age and pay Class 1 employee National Insurance where relevant.
- You have the standard tax code with no adjustments, restrictions or underpayments carried forward.
- Income is spread evenly across the tax year, so no month-by-month PAYE smoothing effects are modelled.
- No other taxable income, taxable benefits in kind, salary sacrifice arrangements or Marriage Allowance transfers are included unless entered.
- Pension contributions are treated as a net pay (salary sacrifice equivalent) deduction taken before income tax is applied.
Limitations
- Whether a supply is standard, reduced, zero-rated or exempt depends on what is being sold and is not decided here.
- The Flat Rate Scheme, cash accounting, partial exemption and reverse charge rules are not modelled.
- Registration thresholds and filing obligations are outside this calculator.
Sources for 2025/26
This calculator estimates figures from what you entered and the published rates for 2025/26. Your actual position depends on your tax code, your employer's payroll, other income and reliefs. This is not tax advice — you may wish to seek professional advice. See our calculation methodology.