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.
VAT Basics
VAT (Value Added Tax) is a tax added to most goods and services sold in the UK. VAT-registered businesses charge it to their customers, reclaim the VAT they pay on their own costs, and pay the difference to HMRC.
These guides explain the basics in plain English: how much VAT is, what the three rates cover, and how VAT works for small businesses and consumers.
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.