Free VAT Calculator
Add or remove UK VAT at 20%, 5% or 0%. Enter an amount to see the net, VAT and gross figures instantly.
A quick UK VAT calculator for tradespeople and small businesses. Add VAT to a net price to get the gross, or strip VAT out of a gross price to find the net and the VAT element, at the standard 20% rate, the reduced 5% rate, or 0%. It also flags the £90,000 registration threshold and the construction domestic reverse charge.
Results
Fill in the details and select Calculate to see your figures.
Win more of the jobs you quote.
Tradehand gives your trade business a whole office team without hiring anyone: it answers every enquiry, sends your quotes the same day and chases them until they land. There is no monthly fee. Tradehand takes 5% of an invoice, and only when the customer actually pays you, so a quiet month costs you nothing.
Get a free demoHow to use the VAT Calculator
- 1Enter your amount: the net (ex-VAT) figure if you're adding VAT, or the gross (inc-VAT) figure if you're removing it.
- 2Choose whether to add VAT (net → gross) or remove it (gross → net).
- 3Pick the rate: 20% standard for most work, 5% reduced for certain energy-saving installations, or 0%.
- 4Read the net, VAT and gross figures. On a construction invoice, remember the domestic reverse charge may mean you don't add VAT at all: see the FAQs.
How to work it out yourself
VAT maths is a single multiply or divide. Adding VAT multiplies up; removing VAT divides down, because the gross already contains the VAT.
- Add 20% to £1,000: VAT = £1,000 × 0.20 = £200; gross = £1,200.
- Remove 20% from £1,200: net = £1,200 ÷ 1.20 = £1,000; VAT = £1,200 − £1,000 = £200.
- A common error is taking 20% off the gross (£1,200 × 0.20 = £240) which is wrong; you must divide by 1.20.
- Reduced rate: divide by 1.05 instead of 1.20.
You only charge VAT if you're VAT registered, which is mandatory once taxable turnover passes £90,000 (from 1 April 2024, HMRC). For most B2B construction services between VAT- and CIS-registered businesses, the domestic reverse charge (HMRC, in force since 1 March 2021) applies and the customer accounts for the VAT instead of you.
Typical UK benchmarks
| Standard VAT rate | 20%: HMRC (gov.uk/vat-rates) |
| Reduced rate | 5% on some energy-saving/works: HMRC |
| Registration threshold | £90,000 taxable turnover from 1 April 2024: HMRC |
Disclaimer
This tool gives an estimate for general guidance only, based on typical UK figures and the details you enter. It is not a formal quote, survey, or professional advice. Always confirm with a qualified tradesperson before relying on any figure, as regional prices, site conditions, and current standards vary.
You do the job, Tradehand handles everything around it.
Tradehand sends the quotes, chases the invoices, books the work and keeps your customers updated, for no monthly fee and 5% of an invoice only once the customer has paid. One office hire costs about £25,000 a year, whether the invoices land or not.
Source: Office manager salary, National Careers Service
Get a free demoFrequently asked questions
How do I add VAT to a price?
Multiply the net price by 1.20 for the standard 20% rate. So £1,000 net becomes £1,200 gross, with £200 of VAT. For the reduced 5% rate, multiply by 1.05 instead.
How do I remove VAT from a gross price?
Divide the gross price by 1.20 (for 20%) to get the net, then subtract the net from the gross to find the VAT. £1,200 gross ÷ 1.20 = £1,000 net, so the VAT is £200. Don't just take 20% off the gross. That gives the wrong answer.
When do I have to register for VAT?
You must register once your VAT-taxable turnover exceeds £90,000 in any rolling 12-month period (the threshold rose from £85,000 on 1 April 2024, HMRC), or if you expect to exceed it in the next 30 days. You can also register voluntarily below the threshold to reclaim VAT on purchases.
What is the VAT reverse charge for construction?
Since 1 March 2021 (HMRC), the domestic reverse charge means that for most B2B construction services between two VAT-registered, CIS-registered businesses, the supplier does NOT charge VAT: instead the customer accounts for it on their own VAT return. You still show the net on your invoice and state that the reverse charge applies. It doesn't apply when the customer is an end user.
What's the difference between the 20%, 5% and 0% rates?
20% is the standard rate for most goods and services (HMRC). 5% is a reduced rate that applies to things like certain energy-saving materials and some renovation work. 0% (zero-rated) applies to a specific list such as some new-build construction: it's still technically VAT, just at 0%, which is different from a supply being exempt.
Should my quotes show prices with or without VAT?
For domestic customers, quote the gross (VAT-inclusive) price so there are no surprises. They can't reclaim VAT. For business customers who can reclaim, quote net plus VAT. Being clear which you mean avoids disputes; a good job-management system stores both so the right figure lands on the quote and invoice.
