UK VAT Guide 2026
Free UK VAT calculator, return estimator, flat rate scheme and threshold checker · Last updated June 2026 · Not tax advice
GetVAT is a free suite of VAT tools built for UK freelancers, sole traders, small businesses and limited company directors. It covers the four most common VAT tasks: calculating VAT on prices, estimating your quarterly VAT return, checking whether the flat rate scheme saves you money, and monitoring your turnover against the £90,000 registration threshold.
All calculations happen entirely in your browser. No data is ever sent to or stored on our servers. GetVAT has no account system and requires no sign-up.
UK VAT rates explained
| Rate | Applies to |
|---|
| 20% Standard | Most goods and services — the default rate |
| 5% Reduced | Home energy, children's car seats, some mobility aids, sanitary products |
| 0% Zero | Most food, children's clothing, books, newspapers, public transport |
| Exempt | Insurance, financial services, education, health services — VAT does not apply and cannot be reclaimed |
How to add VAT
To add VAT at 20%, multiply the net (ex-VAT) price by 1.20. For example: £100 net × 1.20 = £120 gross (£20 VAT). For the 5% reduced rate, multiply by 1.05.
How to remove VAT
To remove 20% VAT from a gross (VAT-inclusive) price, divide by 1.20. For example: £120 gross ÷ 1.20 = £100 net. For the 5% rate, divide by 1.05.
How to complete a UK VAT return
A UK VAT return has nine boxes. Most businesses on standard VAT accounting complete Box 1 (VAT on sales), Box 4 (VAT reclaimed on purchases), and Box 5 (the net figure, automatically calculated as Box 1 minus Box 4). Boxes 6 and 7 report the net value of sales and purchases. Boxes 2, 3, 8 and 9 are for EU transactions or specific adjustments.
Box 5 worked example: A business has £10,000 net sales at 20% (output VAT: £2,000) and £2,000 net purchases at 20% (input VAT: £400). Box 5 VAT payable = £2,000 − £400 = £1,600.
Most VAT-registered businesses must submit returns via Making Tax Digital (MTD) compatible software. Returns are due one month and seven days after the end of your VAT period.
What is the VAT flat rate scheme?
The flat rate scheme (FRS) lets eligible small businesses pay a fixed percentage of their gross (VAT-inclusive) turnover to HMRC rather than accounting for VAT on every transaction. The percentage varies by sector — from 4% for some agricultural and healthcare businesses to 16.5% for limited cost businesses.
The FRS is most beneficial for businesses with low VAT-ratable purchases. A consultant charging 20% VAT but paying a 14.5% flat rate keeps the difference (5.5% of gross turnover) as profit. In the first year of VAT registration, the applicable rate is reduced by 1%.
You cannot use the FRS if your expected VAT-inclusive turnover in the next 12 months exceeds £150,000. You must leave the FRS if your turnover in the last 12 months exceeded £230,000.
VAT registration threshold 2026/27
You must register for VAT with HMRC if your taxable turnover exceeds £90,000 in any rolling 12-month period. You have 30 days to register once you exceed the threshold, and must charge VAT from the date you were required to register. Voluntary registration below £90,000 is permitted and may be beneficial if your customers are VAT-registered businesses.
The deregistration threshold is £88,000 — if your taxable turnover falls below this you can apply to deregister.
VAT on invoices
VAT-registered businesses must issue VAT invoices showing: your VAT registration number (format GB123456789), the net amount, VAT rate, VAT amount, and gross total. Use GetInvoice.co.uk to generate free HMRC-compliant PDF invoices with VAT calculated automatically.
Further reading
For official HMRC guidance: How VAT works — GOV.UK · VAT flat rate scheme — GOV.UK · Register for VAT — GOV.UK.
Also from the Get Suite
GetVAT is part of a suite of free UK business tools. Also try GetInvoice.co.uk for free HMRC-compliant PDF invoices, GetPayslip.co.uk for payslip estimates including PAYE and National Insurance, GetMileage.co.uk for HMRC mileage allowance calculations at the new 55p rate, GetStudentLoan.co.uk for student loan repayment projections, GetTimesheet.co.uk for free UK timesheet generation, GetSalary.co.uk for take-home pay calculations, and GetDividend.co.uk for dividend tax calculations.