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5% VAT Calculator (Reduced Rate)

Add or remove the UK's reduced 5% VAT rate.

Price before VAT (£)

£105.00

Before VAT£100.00

VAT (5%)£5.00

Total with VAT£105.00

🧭 Good to know

To remove 20% VAT, divide the price by 1.2 (not take away 20%).
Businesses must register for VAT when taxable turnover goes over £90,000 in any rolling 12 months.
The reduced 5% rate covers things like home energy and children's car seats; most food, books and children's clothes are zero-rated.

Rules last checked: October 2026. 🔒 Everything stays on your device.

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✅ Rules last checked: October 2026

📚 Official sources: GOV.UK: VAT rates

We build every tool from the official rules and re-check them when they change. Always confirm with the official source before you rely on a result.

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How do I remove VAT from a price?+

Divide the price including VAT by 1.2 for 20% VAT (or by 1.05 for 5%). For example, £120 ÷ 1.2 = £100, so the VAT is £20.

What is the VAT registration threshold?+

£90,000 of taxable turnover in any rolling 12-month period, since 1 April 2024. You can also register voluntarily below that.