Short answer: UK VAT is 20% standard, 5% reduced and 0% zero-rated. To add 20% VAT multiply by 1.2; to remove it divide by 1.2 (so £120 gross is £100 net plus £20 VAT).
General information, not tax or financial advice. Check GOV.UK or speak to a qualified adviser about your own situation.
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To take VAT out of a gross price at 20%, divide by 1.2. Don't just subtract 20%.
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What is the formula, in plain text?
Add VAT: gross = net × (1 + rate). Remove VAT: net = gross ÷ (1 + rate); VAT = gross − net. At 20%, divide a VAT-inclusive price by 1.2 (do not subtract 20%).
What rates and thresholds apply?
Rate
Applies to
20% standard
Most goods and services
5% reduced
Some goods and services, e.g. home energy, children's car seats
0% zero
Zero-rated goods, e.g. most food and children's clothes
What are some worked examples?
Starting amount
Action
Net
VAT
Gross
£100.00
Add 20%
£100.00
£20.00
£120.00
£120.00
Remove 20%
£100.00
£20.00
£120.00
£99.99
Remove 20%
£83.33
£16.67
£99.99
£200.00
Add 5%
£200.00
£10.00
£210.00
VAT registration threshold: £90,000 taxable turnover over a rolling 12 months (see the VAT threshold checker).