UK VAT rates
Source: GOV.UK — VAT rates. The VAT registration threshold is £90,000 of taxable turnover (GOV.UK).
How to remove VAT (reverse VAT)
If a price already includes VAT, divide by 1 plus the VAT rate to get the net price. The VAT is the difference.
// Formula
Net price = Gross price ÷ (1 + VAT rate)
VAT = Gross price − Net price
// Examples — each comes back to £100.00
Standard 20% ... £120.00 ÷ 1.20 = £100.00
Reduced 5% ..... £105.00 ÷ 1.05 = £100.00
Zero 0% ........ £100.00 ÷ 1.00 = £100.00
Step by step — 20% VAT
- Step 1: Standard rate 20%, so the divisor is 1.2.
- Step 2: Net = gross ÷ 1.2. For £250: £250 ÷ 1.2 = £208.33.
- Step 3: VAT = £250 − £208.33 = £41.67.
- Check: £208.33 × 1.2 = £250.00 ✓
Common mistake: taking 20% off the gross price. £120 less 20% is £96, but the correct net price is £100. Divide by 1.2 instead.
Rates last checked: October 2026. Source: GOV.UK. Not tax advice.