Reverse UK VAT Calculator or How to calculate UK VAT Backwards, Forwards or Reverse
If you are running an online shop, you will often have to enter your prices excluding VAT in the admin area of your website.
On the front end of your website you may want this to be ‘clean price’ or a ’rounded price’ for your customers to view e.g. £20.00.
You may also want this price to include VAT.
The online UK vat calculator allows you to add a clean rounded figure and then calculate the VAT portion for you. This gives you a clean price on the front end of the website with VAT included.
Adding 20% VAT is a straightforward calculation
Adding 20% VAT to a price is easy, (simply multiply by 1.2)
e.g. to add 20% VAT to £100.00 simply multiply £100.00 x 1.2 = £120.00
But calculating what is the VAT portion of £120.00 is not as simple as taking 20% of £120.00 (which leaves £96.00).
Notice how adding 20% VAT is not the same as removing 20% VAT.
To help you out we have developed this handy little VAT Calculator, that calculates VAT ‘backwards’ or ‘forwards’ or in ‘reverse’, if you prefer.
How to Use the Online VAT Calculator
Simply enter the amount you want to work with, select whether that amount already includes VAT or not and hey presto! – you have VAT Calculated forwards or backwards. Simply tick or untick the ‘Does this include VAT?’ box, to show the figure as VAT included or VAT excluded.
How to remove VAT from a sum manually
Divide the Gross amount by (1 + VAT %)
VAT Rate is 20% so divide by 1.20
£100.00 divided by 1.20 = £83.33
Subtract £83.00 from £100.00 = £16.67
Therefore £16.67 is the VAT Amount on an item sold for £100.00.
If you try this sum on the Calculator you will see that it is correct.
The Online VAT Calculator can be used to:-
- Remove VAT from a figure.
- Work out the VAT on a price or figure.
- Calculate the VAT inclusive portion of a price for a product or service.
- Calculate VAT from a Gross figure.
- Calculate VAT Backwards (e.g. adding VAT to £1.00 is £1.20, add 20%. Removing VAT is not £0.80 – try the VAT Calculator to see)
- Calculate the VAT content of a number, which is inclusive of VAT.
- Used to calculate VAT Backwards.
- Calculate the VAT Element of a given price.
- Calculate VAT from Total Price of a Product or Service which includes VAT.
- Take 20% off a price or any number.
- How to add or subtract VAT from a number.
- How to calculate sales tax backwards.
What is the current VAT (Value Added Tax) Rate in the UK in 2019?
There are 3 basic rates of VAT in the United Kingdom which are applied to goods and services.
The Standard VAT rate is 20%
This is the VAT rate most commonly used in the UK and covers most goods and services.
The VAT Calculator above is used for calculating this rate both adding VAT to a number and subtracting VAT from a number.
The 20% Value Added Tax Rate has been in place since 4th January 2011.
The rate was previously 17.5%.
The Reduced VAT Rate is 5%
Some goods and services use the Reduced VAT Rate (e.g. Home Energy)
The Zero Rate VAT is 0%
Food and children’s clothes are examples of goods and services that are 0% VAT Rated.
Helpful VAT Links
What is the VAT Bank Account and Sort Code for making Payments?
When making payments to HMRC for VAT use the following bank details.
Sort code – 08 32 00
Account Number 11963155
Account Name – HMRC VAT
Making Tax Digital for VAT 2019
On 13 July 2017, the Financial Secretary to the Treasury and Paymaster General announced that Making Tax Digital for VAT will come into effect from April 2019.
From that date, businesses with a turnover above the VAT threshold (which is currently £85,000) will have to keep their records digitally (for VAT purposes only), and provide their VAT return information to HM Revenue and Customs (HMRC) through Making Tax Digital (MTD) functional compatible software.