Working
How to work out VAT
Adding VAT to a price
Multiply the price without VAT by 1.2 for 20% VAT, or by 1.05 for 5%. For example, £100 + 20% VAT = £100 × 1.2 = £120, of which £20 is VAT.
Removing VAT from a price
Divide the total by 1.2 (or 1.05) to get the price without VAT. A quick way to find just the VAT in a total is the “VAT fraction”:
| Rate | Add VAT | Remove VAT | VAT in a total |
|---|---|---|---|
| 20% | × 1.2 | ÷ 1.2 | total × 1/6 |
| 5% | × 1.05 | ÷ 1.05 | total × 1/21 |
For example, a £120 receipt at 20% contains £120 ÷ 6 = £20 of VAT. A common mistake is taking 20% off the total (£24), which is too much.
Common amounts plus VAT (20%)
Quick answers for amounts people often look up. Select any answer to load it into the calculator above.
| Amount | Plus 20% VAT | VAT added | If the amount already includes VAT |
|---|---|---|---|
| £10 | £2 | ||
| £20 | £4 | ||
| £21 | £4.20 | ||
| £24 | £4.80 | ||
| £50 | £10 | ||
| £100 | £20 | ||
| £120 | £24 | ||
| £150 | £30 | ||
| £200 | £40 | ||
| £250 | £50 | ||
| £300 | £60 | ||
| £400 | £80 | ||
| £500 | £100 | ||
| £600 | £120 | ||
| £750 | £150 | ||
| £1,000 | £200 | ||
| £1,200 | £240 | ||
| £1,500 | £300 | ||
| £2,000 | £400 | ||
| £2,500 | £500 | ||
| £3,000 | £600 | ||
| £3,500 | £700 | ||
| £5,000 | £1,000 | ||
| £10,000 | £2,000 |
Which VAT rate applies?
- 20% standard rate: most goods and services, including adult clothing, electronics, most professional services and, since 1 January 2025, private school fees.
- 5% reduced rate: for example domestic gas and electricity, and children’s car seats.
- 0% zero rate: for example most food (not hot takeaway or catering), children’s clothes and shoes, books and e-books, and sanitary products.
- Exempt: no VAT at all, for example insurance, most financial services and postage stamps.
Not sure which applies to you? Use our Do I need to charge VAT? checker.
FAQ
What is £250 plus VAT?
£250 plus 20% VAT is £300, of which £50 is VAT. The table above has answers for other common amounts.
How do I calculate 20% VAT?
Multiply the price without VAT by 0.2 to get the VAT, or by 1.2 to get the total including VAT. £250 without VAT is £50 of VAT and £300 in total.
How do I remove VAT from a price?
Divide the total by 1.2 for 20% VAT (or 1.05 for 5%). £300 including VAT is £250 without VAT. Don’t just take 20% off, which gives the wrong answer.
What is the VAT rate in the UK?
The standard rate is 20%. Some goods and services are charged at the 5% reduced rate or the 0% zero rate, and some are exempt from VAT.
Should I round VAT up or down?
HMRC lets you round the total VAT on an invoice down to a whole penny. If you work out VAT line by line, round each line to the nearest penny or down, and do it the same way every time. This calculator rounds to the nearest penny.
Add this VAT calculator to your website
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