Free Invoice Calculator
Instantly calculate invoice subtotals, VAT, discounts, and final gross totals. Perfect for UK freelancers, contractors, and small businesses.
Calculate Your Invoice Totals
Enter your invoice details below to instantly generate an accurate breakdown of your net amount, VAT, and the final gross total your client needs to pay.
Invoice Details
Enter the line item or total service details
Invoice Breakdown
Calculated from your provided details
UK VAT Rates Explained
A summary of the current Value Added Tax rates applied to goods and services in the United Kingdom.
| VAT Rate | Percentage | Common Examples |
|---|---|---|
| Standard Rate | 20% | Most goods and services, including professional services, electronics, and clothing. |
| Reduced Rate | 5% | Domestic fuel and power, children’s car seats, sanitary products, and certain home renovations. |
| Zero Rate | 0% | Most food items, books, newspapers, children’s clothing, and public transport. |
| Exempt | N/A | Insurance, postage stamps, property transactions, and certain financial services (no VAT charged, but cannot reclaim VAT on expenses). |
Invoicing & VAT FAQ
Answers to the most frequently asked questions about creating invoices and calculating VAT in the UK.
The standard VAT (Value Added Tax) rate in the UK is 20%. This applies to most goods and services. Some items qualify for a reduced rate of 5% (e.g., domestic fuel, children’s car seats), and others are zero-rated at 0% (e.g., most food, books, children’s clothing).
You only need to charge VAT on your invoices if your business is VAT-registered with HMRC. This is mandatory if your taxable turnover exceeds the VAT registration threshold (currently £90,000 over a 12-month period). If you are not registered, you cannot charge or reclaim VAT.
The ‘Net’ amount is the total price of the goods or services before any taxes (like VAT) are added. The ‘Gross’ amount is the final total the customer must pay, which includes the Net amount plus any applicable VAT.
To extract the VAT from a Gross amount at the standard 20% rate, divide the Gross amount by 1.2 to find the Net amount. Then, subtract the Net amount from the Gross amount to find the VAT value. For example, £120 Gross / 1.2 = £100 Net. The VAT is £20.
