VAT Calculator (Add / Remove VAT)
Add or remove VAT at the standard, reduced or zero rate, and check the £90,000 registration threshold for your contracting business.
You're below the registration threshold and don't need to register yet.
Compulsory registration once taxable turnover exceeds £90,000 in any rolling 12-month period (register within 30 days of month-end); unchanged since 1 April 2024 and confirmed unchanged at Spring Statement 2026. Voluntary deregistration threshold (if turnover falls below) is £88,000.
Adding, removing and registering for VAT as a contractor
VAT is straightforward to calculate once you know the rate, but knowing which rate applies, and whether you need to register at all, catches out plenty of newer contractors and small businesses. For 2026/27, the standard rate is 20%, a reduced 5% rate applies to specific goods and services such as domestic energy, and a 0% rate applies to items like most food, books and children's clothes.
What this calculator covers
- Add or remove VAT at the standard (20%), reduced (5%) or zero (0%) rate, for invoicing or checking a supplier's figures
- Compulsory VAT registration is required once your taxable turnover exceeds £90,000 in any rolling 12-month period — you must register within 30 days of the month-end in which you crossed the threshold
- If turnover later falls, voluntary deregistration becomes possible once it drops below £88,000
- For contractors already using the VAT flat rate scheme, use our separate flat-rate VAT calculator, which compares the flat-rate percentage against standard VAT accounting
