Quickly calculate the VAT (Value Added Tax) on your goods and services using our simple online VAT Calculator. Enter your numbers below, and our free tool will instantly show you the exact amount of VAT you must add or subtract.
Understanding VAT
VAT (Value Added Tax) is a tax charged on most goods and services sold in the UK. If you are starting your own business or already have one, it is important to know how much VAT you need to charge your customers or pay to suppliers. Accurate VAT calculations help you manage your finances properly and stay compliant with HMRC rules.
The standard VAT rate is 20%, which applies to most goods and services. Some items are eligible for a reduced rate of 5%, such as children’s car seats and home energy. Additionally, certain goods and services, like most food and children’s clothing, are zero-rated, meaning no VAT is charged on them. ​
Incorrect VAT figures can cause problems with HMRC, including fines or penalties. Using a simple calculator like ours helps you avoid these issues by clearly showing the correct VAT amounts. For detailed VAT rules, you can visit the official VAT guidance page.
VAT Registration and Accounting Support
In the UK, you must register for VAT if your turnover exceeds the VAT threshold (£85,000 in 2025). Once registered, you can reclaim VAT on business-related purchases. However, registering also means extra paperwork, such as submitting regular VAT returns and keeping detailed records. Good management of VAT is essential to running your business smoothly.
Getting professional accounting support can simplify VAT registration and management. Accountants help you understand VAT regulations, correctly submit VAT returns, and avoid costly mistakes. Using a simple tool like our VAT Calculator alongside professional advice ensures accurate VAT management and peace of mind.