TradeLinkers
VAT calculator
Add VAT to a price or take it off, at 20%, 5%, 0% or any rate. Then check your last 12 months against the VAT registration threshold.
How do you add VAT to a price?
Multiply the price before VAT by 1.2 for the 20% standard rate, or by 1.05 for the 5% reduced rate. A £500 job at 20% is £500 x 1.2 = £600: £500 for the work and £100 VAT. Zero-rated work has VAT at 0%, so the price stays the same.
To find just the VAT, multiply the price before VAT by the rate: £500 x 20% = £100.
How do you take VAT off a price?
Divide the price including VAT by 1.2 for 20% VAT, or by 1.05 for 5%. So £600 ÷ 1.2 = £500 before VAT. Don't just knock 20% off the total: 20% of £600 is £120, which is too much. The VAT in a 20% price is one sixth of it.
| Rate | Add VAT | Remove VAT | VAT in a VAT-inclusive price |
|---|---|---|---|
| 20% | x 1.2 | ÷ 1.2 | ÷ 6 |
| 5% | x 1.05 | ÷ 1.05 | ÷ 21 |
| 0% | no change | no change | £0 |
Which VAT rate applies to trade work?
Work on an existing building is normally standard-rated at 20%. There are exceptions: some work is zero-rated, and some is reduced-rated at 5%, depending on what the work is and the type of building. HMRC's VAT Notice 708 sets out the rules for building and construction. If you're unsure, check it or ask an accountant.
Read VAT Notice 708: buildings and construction on gov.uk, and the rates list at VAT rates. Our guide to VAT for tradespeople covers the basics in plain English.
When do you have to register for VAT?
When your VAT taxable turnover for the last 12 months goes over £90,000, or you expect it to go over £90,000 in the next 30 days alone. The 12 months is a rolling period, not the tax year. If you go over, you have to register within 30 days of the end of that month.
Your registration then takes effect from the first day of the second month after you went over. The £90,000 threshold has applied since 1 April 2024. Below it, you can still choose to register voluntarily. If you're already registered and your taxable turnover is less than £88,000, you can deregister.
Can you charge VAT if you're not VAT registered?
No. You have to register for VAT before you can start charging it. Once you're registered, you must charge VAT on the goods and services you sell unless they're exempt. If you're not registered, your quotes and invoices shouldn't show VAT at all, and the customer simply pays your price.
In TradeLinkers, VAT lines only appear on your invoices once you've marked the business as VAT registered and added your VAT number. Then you can pick 0%, 5%, 20% or a custom rate, and the VAT number is printed on the invoice.
VAT done properly on every invoice.
Mark yourself VAT registered once in TradeLinkers and your invoices show the VAT, the rate and your VAT number. 14 days free, then £9.99 a month.
Android app on Google Play. On an iPhone or a computer, use the web app with the same account.