UK VAT Calculator (Standard, Reduced & Flat Rate).

Multiply the net price by 1 plus the VAT rate. For the 20% standard rate, multiply by 1.2; for the 5% reduced rate, multiply by 1.05. The calculator does this automatically and shows the VAT element separately so you can copy it to your invoice.

Divide the gross figure by 1.20 (standard rate) or 1.05 (reduced rate). The remainder is the net price; the difference is the VAT element. The 'reverse VAT' direction in the calculator handles this automatically.

You must register for VAT once your taxable turnover exceeds £90,000 in any rolling 12-month period, or if you expect to exceed it in the next 30 days alone. You can also register voluntarily below the threshold to reclaim input VAT.

It depends on how much input VAT you would otherwise reclaim. The FRS is simpler and gives a 1% discount in the first year, but if you incur a lot of VATable expenses you may pay more under it. The comparison panel above shows your break-even at a glance — Countify can model this in detail.

Since April 2017, businesses on the Flat Rate Scheme whose goods cost less than 2% of turnover (or less than £1,000 a year) must use a fixed 16.5% rate, which effectively removes most of the FRS benefit. The category is common for consultancy and service businesses.

No. Domestic reverse charge (e.g. construction services under CIS) and cross-border B2B supplies require specific accounting entries. Get in touch with Countify if you need help structuring a reverse-charge invoice.