Monday, 15 March 2010
This calculator allows you to work out how much VAT should be added to an amount, or to calculate the VAT in a VAT-inclusive amount.
Rates
There are three different rates of VAT, which apply to different types of goods and services:
Thresholds
Registration threshold – You must register for VAT when the value of your taxable supplies exceeds £67,000.
Deregistration threshold – You can deregister for VAT when the value of your taxable supplies falls below £65,000.
Schemes
Annual accounting VAT scheme – You can use annual accounting if your estimated turnover in the forthcoming tax year does not exceed £1.35 million. If you are already using annual accounting, you can continue until your estimated turnover exceeds £1.6 million.
Cash accounting VAT scheme - You can use cash accounting if your estimated turnover in the forthcoming tax year does not exceed £1.35 million. If you are already using cash accounting, you can continue to use it until your estimated turnover exceeds £1.6 million.
For more information, refer to the HMRC's guide to VAT accounting schemes.
The calculation
If you wish to make the calculations yourself, these are the formulas you should use:
VAT-inc. price = (VAT-ex price x 0.175) + VAT-ex price VAT-ex. price = (VAT-inc price / 1.175) VAT = VAT-inc. price – VAT-ex price |
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