How Much Is VAT in the UK? 2026 Rates Explained
The current UK VAT rates for 2026 - 20%, 5% and 0% - with plain-English examples of what each applies to, the difference between zero-rated and exempt, and a 2026 change worth knowing about.
UK VAT Guides
Clear answers to UK VAT questions, written for business owners and consumers rather than accountants. Every guide has worked examples and links to the official HMRC source.
VAT Basics
What VAT is, how it works and the rates that apply in the UK.
VAT Explained for UK Small Businesses
A plain-English introduction to VAT for UK small business owners - what it is, when you need to register, and how to calculate it correctly
VAT Inclusive vs VAT Exclusive Prices
What "inc VAT" and "ex VAT" mean, when UK businesses must show VAT-inclusive prices, and how to convert between the two without making the most common mistake.
Output VAT and Input VAT Explained
Output VAT is the VAT you charge on sales; input VAT is the VAT you pay on business costs. How the two work together, what you pay HMRC, what you can reclaim, and worked examples.
VAT Calculations
Adding, removing and reversing VAT with worked examples.
How to Work Out VAT Backwards
How to find the price before VAT from a VAT-inclusive total - the correct method, the common mistake most people make, and a mental shortcut that makes it easy.
How to Work Out VAT on a Calculator
The exact button sequence to add or remove VAT using a basic calculator, phone calculator app or the percentage key - step by step, with worked examples.
How to Add VAT to a Price
How to add 20% or 5% VAT to any price - by hand, on a calculator or phone, and in Excel or Google Sheets - with worked examples, invoice tips and the mistakes to avoid.
VAT for Businesses
Registering, charging VAT and staying on the right side of HMRC.
How to Register for VAT as a UK Small Business
When you have to register for VAT, when it's worth doing voluntarily, how the registration process works step by step, and what changes once you're registered.
VAT Registration Threshold Explained
The UK VAT registration threshold explained: how the rolling 12-month test and the 30-day test work, what counts as taxable turnover, the deadlines, and what happens if you register late.
How to Prepare for a VAT Return
A step-by-step checklist for preparing a UK VAT return under Making Tax Digital - the deadlines, what goes in each of the nine boxes, the checks to run before you submit, and how to pay.
How to Charge VAT to Customers
Just registered for VAT? When to start charging, which rate to use, how to show VAT on prices and invoices, the tax point rules, and what to do with existing customers and contracts.
VAT Deregistration Explained
When you can or must cancel your VAT registration, the deregistration threshold, how to apply to HMRC, the 30-day deadline, and what happens to your stock, assets and final VAT return.
VAT Invoices
What a valid VAT invoice must show and how to create one.
VAT on Invoices: What You Need to Include
What a valid VAT invoice has to show, how to lay out the VAT breakdown correctly, and the errors that get invoices bounced back by a client's accounts team.
How to Create an Invoice
A complete guide to creating a professional invoice - what to include, how to number and structure it, setting payment terms, handling VAT, and getting paid on time.
VAT Invoice vs Normal Invoice
What turns an ordinary invoice into a VAT invoice, who can issue one, and when you can use a simplified or modified VAT invoice instead - with a side-by-side checklist.
How to Correct a VAT Invoice
Sent a VAT invoice with the wrong amount, rate or details? How to fix it properly with a credit note and a new invoice, what a VAT credit note must show, and how corrections affect your VAT return.
UK VAT Questions
Quick, sourced answers to everyday VAT questions.
How to Check if a Company Is VAT Registered
How to find out if a UK company is VAT registered, verify a VAT number using HMRC's official checker, what a valid VAT number looks like, and what to do if a supplier's number doesn't check out.
Is There VAT on Train Tickets in the UK?
The complete answer on VAT and UK train tickets - why rail fares are zero-rated, the 10-seat rule behind it, what IS charged VAT on a rail journey, and exactly how to handle train fares on expense claims and VAT returns.
Do Charities Pay VAT in the UK?
Charities aren't automatically exempt from VAT - but they do get specific reliefs. A clear explanation of when charities pay VAT, when they don't, and the reliefs worth knowing about.
Is VAT Charged on Food in the UK?
Most food in the UK is zero-rated, but crisps, sweets, ice cream, soft drinks, hot takeaways and eating out are charged 20% VAT. A clear guide to which food has VAT, with examples and the rules behind them.
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