Free tool · UK tradespeople & businesses

UK VAT Calculator — Add, Remove & Reverse VAT

Enter an amount and choose whether to add VAT or remove it. Supports 20%, 5%, and 0% rates. Useful for tradespeople quoting jobs, checking supplier invoices, and reconciling receipts.

UK VAT rates and when they apply

Standard rate — 20%

Applies to most goods and services. The default rate for trade labour, general contracting work, and most service-based businesses. If you are VAT registered and your work does not qualify for a reduced rate, you charge 20%.

Reduced rate — 5%

Applies to specific categories including domestic energy (gas, electricity), renovation and conversion work on properties that have been empty for two or more years, and the installation of certain energy-saving materials in residential properties.

Zero rate — 0%

VAT is charged at 0% on certain goods and services, including the installation of qualifying energy-saving materials in residential properties (zero-rated since April 2022), new-build residential construction, and some food items. Zero-rated supplies are still VAT taxable, so they count toward the registration threshold.

VAT registration: what UK tradespeople need to know

You must register for VAT when your VAT-taxable turnover exceeds £90,000 in any rolling 12-month period. You have 30 days to notify HMRC and must charge VAT from the date you were required to register. Failure to register on time results in penalties.

Voluntary registration is allowed below the threshold. It can be beneficial if most of your customers are VAT-registered businesses — they can reclaim the VAT, and you can reclaim input VAT on your material and business costs. For businesses dealing primarily with non-registered residential customers, voluntary registration typically increases the apparent cost of your services.

If you are not VAT registered, do not add VAT to your invoices and do not include a VAT number. Charging VAT without being registered is an offence under VATA 1994.

The domestic reverse charge for construction

Since March 2021, the Construction Services Domestic Reverse Charge (DRC) applies to most subcontracting work within the construction industry. Under DRC, the main contractor accounts for VAT rather than the subcontractor. If you are a subcontractor supplying CIS-registered construction services to a VAT-registered main contractor, you do not charge VAT — the customer accounts for it instead.

The DRC does not apply to end-user customers (homeowners, businesses consuming the service themselves). Always confirm with your accountant which arrangements apply to your specific work.

VAT Calculator (UK)

Add or remove VAT instantly. Works for standard rate (20%), reduced rate (5%), and zero-rated goods and services. Built for UK tradespeople and self-employed.

What do you want to do?

The price before VAT is added.

VAT amount

£20.00

at 20% VAT

Net amount (ex-VAT)

£100.00

Amount before VAT

Gross amount (inc-VAT)

£120.00

Total your customer pays

VAT basics for UK tradespeople

You only need to charge VAT on your invoices if you are registered for VAT with HMRC. The current UK VAT registration threshold is £90,000in taxable turnover over any rolling 12-month period. If you're below this threshold and not voluntarily registered, you do not add VAT to your invoices.

Once registered, you charge VAT at the correct rate, collect it from your customers, and pay the net VAT to HMRC quarterly (or monthly) via a VAT return. The difference between the VAT you charged and the VAT you paid on your purchases (input tax) is what you pay to HMRC — or reclaim, if input tax exceeds output tax in a quarter.

Which VAT rate applies to my trade?

Work typeVAT rateNotes
Most trade labour and parts20% standardNew builds, commercial work, repairs
Energy-saving materials0% (from Apr 2022)Solar panels, insulation, heat pumps
Residential conversions5% reducedConverting non-residential to residential
Domestic cleaning labour20% standard—

VAT rates and thresholds are subject to change. Always verify with HMRC guidance before raising invoices.

Sending VAT invoices

If you are VAT-registered, your invoices must include your VAT registration number, the VAT rate applied, the VAT amount, and the gross total. Invoices that are missing these details are not valid for your customers to reclaim VAT — which can cause friction, especially with landlord, trade, and commercial clients.

WrkGenie handles this automatically — every invoice includes the correct VAT fields, your registration number, and a properly formatted breakdown. You can see how the invoicing feature works here, or use the free invoice generator to create a one-off VAT invoice without signing up.

Frequently asked questions

I'm not VAT registered — do I still need this calculator?

You don't need to charge VAT, but you might still pay VAT on materials and want to separate your net costs from the gross you paid. This calculator can also help you understand what your invoice would look like if you were registered — useful for planning if you're approaching the threshold.

What is the difference between inclusive and exclusive VAT?

Exclusive (ex-VAT) means the amount before VAT is added — the net price. Inclusive (inc-VAT or gross) is the total your customer pays after VAT is added. Most UK trades quote ex-VAT and the VAT is shown as a separate line on the invoice.

How do I reverse-calculate VAT from a gross amount?

Use the 'Remove VAT from a gross amount' option above. For 20% VAT: divide the gross by 1.2 to get the net. For 5% VAT: divide by 1.05. The difference between gross and net is the VAT element.

Can I reclaim VAT on tools, vans, and materials?

If you are VAT registered and purchase goods or services for business use, you can usually reclaim the VAT you paid (input tax) through your VAT return. This is one of the main benefits of voluntary VAT registration for tradespeople who spend heavily on materials.

What is the flat rate VAT scheme?

The Flat Rate Scheme (FRS) lets you pay a fixed percentage of your gross turnover to HMRC, rather than calculating the difference between output and input tax each quarter. It simplifies your VAT accounting but may not always save you money — it depends on your margins and input VAT spend. Speak to your accountant before joining.

Stop doing this manually every invoice

WrkGenie calculates VAT automatically on every invoice — you just enter your line items and it does the rest. From £19.99/month, no contract.

Once you know your VAT position

Knowing whether to charge VAT \u2014 and at what rate \u2014 is just the first step. The next is making sure your invoices are correct and your records are in order:

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Frequently asked questions

When do I need to charge VAT in the UK?

You must register for VAT and charge it when your taxable turnover exceeds £90,000 in any rolling 12-month period. You can also register voluntarily below this threshold. Once registered, you add VAT to your invoices at the correct rate and pay the net VAT to HMRC quarterly.

How do I add 20% VAT to a price?

Multiply the net (ex-VAT) price by 1.2 to get the gross (inc-VAT) total. For example: £100 net × 1.2 = £120 gross, so the VAT is £20. Use the calculator above to do this instantly.

How do I remove VAT from a gross price?

Divide the gross (inc-VAT) price by 1.2 for 20% VAT, or by 1.05 for 5% VAT, to get the net (ex-VAT) amount. The difference is the VAT element. Use the 'Remove VAT' mode above to calculate this instantly.

What VAT rate do most UK tradespeople charge?

Most trade labour in the UK is charged at the standard 20% VAT rate. Some specific work attracts reduced rates — energy-saving materials like solar panels and insulation are zero-rated from April 2022, and some residential conversion work is 5%. Always check the current HMRC guidance for your specific work type.

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