laskeprosentti

Topic

Tax and VAT

In English the word "tax" covers two completely different things in a search box. VAT is a consumption tax added to the price of goods or services. Income Tax is a personal tax deducted from your pay under your tax code. They're worked out with different formulas, and mixing them up produces wrong figures in both directions.

This topic's calculators

vat calculatorVAT calculatorAdd or remove VAT and work out the tax amount at rates of 20 / 5 / 0%.tax calculatorTax rate calculatorThe effect of your tax rate on take-home pay – an estimation tool.salary calculatorSalary percentage calculatorPay rise, deductions, union fee and an estimate of take-home pay.margin calculatorMargin and growth calculatorGross margin, target price, revenue growth and a purchase offer.percentage calculatorPercentage calculatorFive modes: percentage of a number, share, reverse calculation, increase and change.

Background on this topic

VAT: three directions of calculation

VAT calculations always involve three things: the net price, the tax amount and the gross price. When you know two of them, the third follows. From net to gross you multiply by the VAT factor; from gross to net you divide by the same factor. The tax as a share of the gross price is always smaller than the rate – at the standard 20% rate it's about 16.7%.

Income Tax: why there is no ready-made percentage

Your effective tax rate depends on your total income for the year, the type of income, your allowances and your tax code. So we don't guess your percentage for you. Enter your own rate into the tax rate calculator and you'll see its effect on your take-home pay.

Other topics

All the site's calculators are grouped into six topics. The same calculator can belong to more than one, because a percentage calculation is rarely tied to just one situation.

Discounts and prices6Salary and work4Loans and interest5Maths and formulas5Everyday and leisure5

Guides

Frequently asked questions about tax and vat

How do I remove VAT from a price correctly?

Divide the gross price by the VAT factor: gross / (1 + rate/100). At the standard rate that's gross / 1.20.

What is the UK VAT rate now?

The standard rate is 20%. There's a reduced rate of 5% (for example on domestic energy) and a 0% rate on many food and children's items.

What's the difference between VAT and Income Tax?

VAT is a consumption tax added to the price of goods or services, which the seller passes to HMRC. Income Tax is a personal tax on your earnings.

Can I get my own tax rate here?

No. Your tax rate depends on your total income, the type of income, your allowances and your tax code. Check the official figures on GOV.UK.