Key in a price, choose add or remove, and the invoice writes itself out at the rate you pick.
Worked out by Oval Accountants, Burgess Hill
VAT added
Total to charge£1,500.00
VAT£250.00
How we worked it out £1,250.00 × 1.2 = £1,500.00VAT is 1/6 of the total.
A guide only. Charging VAT? Ask us which rate applies to what you sell. Call 01444 716592
Once your sales for the last 12 months go over £90,000, you have to register. Drag each month up or down to match your takings and watch the steps climb towards the line.
Your last 12 months
£94,300
You went over in September 2026.
Register by 30 October 2026. Your VAT registration would start on 1 November 2026.
We count the 12 months shown. You also have to register if you expect to go over £90,000 in the next 30 days alone.
Most things you sell carry the standard rate. A few carry 5% or nothing at all, and some are exempt, which isn't the same as zero-rated.
20%
Standard rate
Most goods and services.
5%
Reduced rate
Some goods and services, such as home energy and children's car seats.
0%
Zero rate
Most food and children's clothes. Still VAT-taxable, so it counts towards the threshold.
Exempt
No VAT at all
Things like insurance and education. Exempt sales don't count towards the threshold.
No calculator to hand? These are the sums we use, at the standard rate and the reduced rate.
Add 20% VAT
Price × 1.2
£100 × 1.2 = £120
Take 20% VAT off
Total ÷ 1.2
£120 ÷ 1.2 = £100
Just the VAT in a total
Total × 1/6
£120 × 1/6 = £20
At the 5% rate
× 1.05 or ÷ 1.05
VAT is 1/21 of a total
Returns and payment. Most businesses send a VAT return every 3 months. The return and the payment are both due one calendar month and 7 days after the quarter ends.
Making Tax Digital. Every VAT-registered business keeps digital records and sends returns through software. We use Xero and file for you.
Registering by choice. You can register below £90,000, which lets you reclaim VAT on what you buy. Whether it's worth it depends on who your customers are.
We'll tell you when to register, set you up on Xero and send every VAT return for you, on time. Most people hear back within 15 minutes in office hours.
