VAT rates in the UK
| Rate | £100.00 net becomes | VAT inside £100.00 gross |
|---|---|---|
| 20% (standard) | £120.00 | £16.67 |
| 5% | £105.00 | £4.76 |
| 0% | £100.00 | £0.00 |
Worked examples at 20%
- Adding VAT: £250.00 × 1.2 = £300.00 (£50.00 VAT).
- Removing VAT: £250.00 ÷ 1.2 = £208.33 (£41.67 VAT).
Invoicing with VAT
If you're registered for VAT, your invoices need to show the amount without tax, the rate and the VAT separately. Our free invoice generator works it out and lays it out for you. See also what an invoice must include in the UK.