VAT calculator: add or remove VAT and check if you need to register

Two jobs in one place. Add VAT to a net price or take it out of a gross one, at 20%, 5% or 0%. Then enter your taxable turnover to see whether you have to register, which for most freelancers, sole traders and tradespeople is the question that actually matters. The registration threshold is £90,000.

How the sums work

• Add VAT: net × 1.20 gives the gross price at the standard rate. The VAT is net × 0.20.
• Remove VAT: gross ÷ 1.20 gives the net price. The VAT is the gross minus the net, which is one sixth of the gross.
• Reduced rate: use 1.05 in place of 1.20.
• Zero rate: the price does not change, but the sale still counts towards your registration threshold.

When registration becomes compulsory

• Looking back: when taxable turnover over any rolling 12 months goes above £90,000. You then have 30 days from the end of that month to tell HMRC.
• Looking forward: when you expect to pass £90,000 in the next 30 days alone, for example because of one large contract. You must register by the end of that 30 days.
• Voluntary: you can register earlier. It often helps if your clients are VAT-registered businesses, because you reclaim VAT on your costs and they reclaim what you charge.

What does not count

Exempt sales and sales outside the scope of VAT are left out of the threshold test. Zero-rated sales are included, which catches out people who sell books, food or children's clothes.

Sources: GOV.UK: VAT registration thresholds · GOV.UK: VAT rates. Estimates only, not personal tax advice.