VAT Calculator 2026/27

Gross (incl. VAT)

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£1,200.00

£1,000.00 net + £200.00 VAT @ 20.0%

2026/27 rates · Last checked May 2026 · Sources visible below

Breakdown

Net

£1,000.00

VAT

£200.00

Gross

£1,200.00

Quick reference @ 20.0%

Net	Net	VAT	Gross
£100	£100.00	£20.00	£120.00
£250	£250.00	£50.00	£300.00
£500	£500.00	£100.00	£600.00
£1,000	£1,000.00	£200.00	£1,200.00
£5,000	£5,000.00	£1,000.00	£6,000.00
£10,000	£10,000.00	£2,000.00	£12,000.00

Flat Rate Scheme

For turnover below £150k. Pay HMRC a fixed % of your VAT-inclusive turnover instead of accounting for input/output VAT.

Industry

FRS liability on £1,200 at 14.5%: £174.00

FRS vs Standard scheme @ £60,000/year

FRS pays HMRC

£10,440

14.5% of £72,000 gross

Standard output VAT

£12,000

before claiming input VAT back

FRS is better unless your annual input VAT (VAT on purchases) exceeds £1,560. Service businesses with few VAT-able expenses usually win with FRS.

Watch the limited-cost trader rule

HMRC forces a flat 16.5% rate on any FRS business whose VAT-inclusive goods spend is less than 2% of turnover (or less than £1,000/yr). Most consultants, IT contractors and freelancers hit this, a business buying mostly services, software or stock-image subscriptions usually counts as “limited cost”. Fuel, food and capital items don't count toward the 2%. If 16.5% is your effective FRS rate, the standard scheme is almost always cheaper. GOV.UK guidance →

Registration tracker

Annual taxable turnover

£60,000 of £90,000 threshold67%

Where your tax goes

on £200 VAT

Illustrative allocation only - UK taxes are not ring-fenced. Approximate share of UK central government spending, applied to your VAT.

21%

£43

Welfare

≈ 1 weeks of welfare per citizen

21%

£42

Health

≈ 4 days of NHS care (per citizen)

12%

£24

State Pensions

≈ 0 weeks of state pension

11%

£22

National Debt Interest

10%

£21

Education

≈ 1 school days funded

£11

Defence

Categories and shares from HMRC's 2024/25 Annual Tax Summary methodology (PESA 2025 + OBR March 2025). Last reviewed 2026-04-29.

See the full UK budget →

+ £39 across public order & safety, transport, business & industry and 6 more

Estimates for illustrative and educational purposes only. Calculations use HMRC published rates and are not regulated financial, tax, or legal advice. Verify against your own tax position before filing or making financial decisions.

UK VAT essentials

VAT is collected by businesses on most goods and services and remitted to HMRC. The standard rate is 20%, reduced is 5%, and zero is 0%, but each has very different reclaim rules. Once your taxable turnover passes £90,000 you must register.

What is the UK VAT registration threshold for 2026/27?

£90,000 of taxable turnover in any rolling 12-month period. Once you cross it, you must register within 30 days and start charging VAT.

What are the UK VAT rates?

Standard rate 20% (most goods and services), reduced rate 5% (domestic energy, child car seats), zero rate 0% (most food, books, children's clothes). 'Exempt' supplies (financial services, insurance) are different again: you can't reclaim input VAT.

What is the Flat Rate Scheme?

An optional simplification for businesses with turnover under £150,000. You charge customers 20% as normal, but pay HMRC a fixed percentage of your VAT-inclusive turnover instead of accounting for input/output VAT. The percentage depends on your industry.

How do I work out VAT on a gross price?

Divide the gross by 1.2 to get the net (at 20%). The VAT amount is gross − net, or equivalently gross × 1/6. Use the 'Remove VAT' option in this calculator for any rate.