5% VAT Calculator


How To Use The Reduced Rate VAT Calculator

Type in your Net Amount and we will automatically calculate your VAT Amount and Gross Amount at the UK Reduced VAT rate of 5%

The VAT Amount line shows how much VAT has been calculated from the Net Amount. The Gross Amount is the Net Amount plus the VAT added to give you the gross total.

How To Calculate Reduced Rate VAT

To manually calculate 5% VAT is simple, multiply the cost by 1.05
Example to add 5% £100 x 1.05 = £105 – This gives you the Gross Amount including VAT.

How To Reverse 5% Rate VAT

£100.00 divided by 1.05 = £95.24
Subtract £95.24 from £100.00 (100 – 95.24) = £4.76 – this is the VAT Amount on an item sold for £100.00

What Is the Reduced VAT Rate in the UK?

Currently the reduced rate is 5%. In 1993 The UK’s government introduced the reduced rate for domestic and charity consumed fuel and power. Over time the reduced rate has been expanded to include women’s sanitary items, children’s car seats, energy-saving materials, mobility aids for older people aged over 60, and quit-smoking products. 

VAT On Houses And Flats

Most work done on houses and flats by builders and similar trades for example, plumbers and carpenters charge VAT at the standard rate of 20%, but there are a few exceptions. These exceptions must meet certain conditions, including:

* Installing energy saving products and certain work for people over 60
* Converting a building into a house or flats or from one residential use to another
* Renovating an empty house or flat

VAT On Mobility Aids

Certain mobility aids sold to people over the age of 60 are at a reduced rate of VAT when you pay for them to be supplied and installed in your home. To qualify for the reduced VAT the product must be installed and not just bought, it has to be for a private home, a residential care home does not qualify and you must be over 60 when the product is supplied or installed. Qualifying products include:

* Grab rails and ramps
* Stair lifts and bath lifts
* Built-in shower seats or showers containing built-in shower seats
* Walk-in baths with sealable doors

Tampon Tax

After over 20 years of campaigning, women’s sanitary items which are currently at the reduced 5% VAT, will have its tax dropped to Zero VAT, this will happen on Dec. 31, 2020 when the transition period for Britain leaves the EU ends.

Covid-19 VAT Cut

Due to Covid-19 the UK’s Government will be cutting the rate of VAT applied on tourism and hospitality related activities from 20% to 5% for six months. This will affect hotels, restaurants and attractions such as cinemas and theme parks. The tax cut will take place from Wednesday July 15 until January 12, 2021.