This free UK VAT calculator helps business owners, contractors, and individuals quickly work out Value Added Tax. You can easily add VAT to a net amount or remove VAT from a gross amount using the standard UK VAT rate of 20% or at a reduced rate to match your needs. Perfect for invoices, receipts, and tax calculations
VAT - or Value Added Tax - is charged by businesses at the point of sale of goods and services sold in the UK and the Isle of Man. Basically it is a tax on business transactions. Value Added Tax was introduced in 1973 as a replacement for Purchase Tax and Selective Employment Tax, as a condition of UK entry into the European Economic Community.
The reduction in the standard rate of VAT from 17.5% to 15% was prompted by the recent financial turmoil in the global financial system in 2008 and increased to 20% in January 2011.
The Chancellor stated that the temporary reduction would last for 13 months before returning to 17.5 per cent in January 2010.
The Chancellor stated in his 2008 Pre-Budget report that "This temporary reduction is the equivalent of the Government giving back some 12 and a half billion pounds to consumers to boost the economy."
We will be launching a range of guides and articles to cover a range of VAT related issues over the coming weeks and months. If you would like any information regarding VAT or any issues surrounding Value Added or any other Tax then do let us know.