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VAT Calculator

Add VAT to a net amount or remove VAT from a gross amount. Standard rate (20%), reduced rate (5%), or zero rate.

£

Breakdown

Net (before VAT)£1000.00
VAT (20%)£200.00
Gross (including VAT)£1200.00

VAT rates for common trade work

Most trade work (repairs, installs)20% standard
Energy-saving materials (insulation, solar)0% zero-rated (from April 2022)
Residential conversions (change of use)5% reduced
Renovation of empty dwellings (2+ years)5% reduced
Grant-funded energy efficiency work0% or 5% depending on scheme
New build residential (zero-rated)0% zero-rated

Muster handles VAT automatically

Set your VAT rate once. Every quote and invoice calculates VAT correctly. Integrates with Xero and QuickBooks for returns.

Try Muster free

VAT for UK trade businesses

You must register for VAT when your taxable turnover exceeds £90,000 in a 12-month period (2024/25 threshold). Once registered, you charge VAT on your invoices and can reclaim VAT on business purchases.

The VAT registration threshold for 2025/26 is expected to remain at £90,000. Under Making Tax Digital (MTD), VAT-registered businesses must keep digital records and file quarterly returns using compatible software.

Frequently asked questions

When should tradespeople register for VAT?▾

You must register when your VAT-taxable turnover exceeds £90,000 in a rolling 12-month period. You can voluntarily register below this threshold — useful if most of your customers are VAT-registered businesses, as you can reclaim input VAT on materials and tools.

What's the reduced VAT rate for?▾

The 5% reduced rate applies to certain residential work: conversions, renovations of dwellings empty for 2+ years, and some energy-saving installations. You must meet specific conditions and keep documentation proving eligibility.

Can I reclaim VAT on my van and tools?▾

Yes, if you're VAT registered. You can reclaim VAT on business purchases including tools, materials, fuel (business mileage), and your van (subject to private use rules). Keep all VAT invoices and receipts.

What is the reverse charge for construction?▾

The domestic reverse charge for construction applies to most CIS-covered services between VAT-registered businesses. The customer (not the supplier) accounts for the VAT. This doesn't apply to end-user customers or non-CIS work.