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.
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