Free Tools

VAT calculator

How much VAT do you owe this quarter? Enter your sales and purchases to calculate your VAT liability under both standard and flat rate schemes.

Using 2025/26 UK rates · VAT registration threshold: £90,000

Total revenue for the quarter before VAT

£

Business expenses you can reclaim VAT on

£

How UK VAT works

VAT (Value Added Tax) is charged at 20% on most goods and services in the UK. If your business turnover exceeds £90,000 in a 12-month period, you must register for VAT. Once registered, you charge VAT on your sales (output VAT) and can reclaim VAT on your business purchases (input VAT). The difference is what you pay to HMRC.

The flat rate scheme simplifies VAT by letting you pay a fixed percentage of your gross turnover instead of tracking every invoice. It is often beneficial for service businesses with low expenses but can be more expensive for businesses that buy a lot of stock or materials.

Know the cash is there before the bill

CFO Pal reads your live accounting data, warns you the day something moves, and shows the cash position your next bill comes out of.

Start your 14-day free trial

From £199/month + VAT after trial · Cancel anytime