How do I work out VAT from a gross amount?

Divide the gross amount by 1.20 (20% VAT) or 1.05 (5% VAT) to get the net. The difference is the VAT. This tool does it automatically, both ways.

When does the reduced rate apply to building work?

The 5% reduced rate can apply to energy-saving materials and certain residential conversions or renovations. Conditions apply, so keep evidence of eligibility.

What is zero-rated construction work?

Building a new dwelling and some adaptations for disabled people can be zero-rated. The qualifying conditions are strict — check before invoicing.

Does the reduced rate cover materials?

Where it applies, it generally covers labour and the materials the trader supplies and installs. Materials the client buys separately may be standard-rated.

Free tool

Building VAT calculator

Convert a net amount to gross (or the other way round) at the right construction VAT rate. Updates as you type.

I know the…

Amount (Net)

VAT rate

Gross amount

£0.00

Net amount£0.00

VAT 20%£0.00

Gross amount£0.00

Gross = Net × (1 + rate)

Invoice with the right VAT, automatically

Create quotes and invoices where VAT is worked out for you, and reuse your details on every document.

VAT and totals calculated automatically
Reusable clients and line items
Quote to invoice in one click

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Which VAT rate for which work?

The rate depends on the type of work and the property. Here are the three broad cases.

20 %Standard rate

Most repairs, maintenance and general building work.

Examples

Repairs and general maintenance
Most renovation and fit-out work
Extensions to an existing dwelling
Labour and materials supplied by the trader

Condition : Standard rate: applies by default whenever no reduced or zero rate applies.

5 %Reduced rate

Energy-saving and certain residential conversions.

Examples

Energy-saving materials in a dwelling
Converting a property into a different number of dwellings
Renovating a home empty for 2+ years
Some mobility adaptations for older people

Condition : Reduced rate: conditions apply and evidence of eligibility must be kept.

0 %Zero rate

New residential builds and disability adaptations.

Examples

Building a new house or flat
Some work for disabled people in their home
Approved alterations to listed dwellings
First grant of a major interest in a new dwelling

Condition : Zero rate: strict qualifying conditions apply — check eligibility before invoicing.

How it works

1Choose whether the amount you know is net or gross.
2Enter the amount and pick the VAT rate that matches your work.
3Net, VAT and gross appear instantly — copy them in one click.

The right VAT means a correct quote

Charging the wrong rate inflates your price or exposes you to a correction later. This tool converts net and gross both ways, rounded to the penny, for quotes you can stand behind.

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Frequently asked questions

How do I work out VAT from a gross amount?: Divide the gross amount by 1.20 (20% VAT) or 1.05 (5% VAT) to get the net. The difference is the VAT. This tool does it automatically, both ways.
When does the reduced rate apply to building work?: The 5% reduced rate can apply to energy-saving materials and certain residential conversions or renovations. Conditions apply, so keep evidence of eligibility.
What is zero-rated construction work?: Building a new dwelling and some adaptations for disabled people can be zero-rated. The qualifying conditions are strict — check before invoicing.
Does the reduced rate cover materials?: Where it applies, it generally covers labour and the materials the trader supplies and installs. Materials the client buys separately may be standard-rated.

Indicative calculation based on UK construction VAT rates. Eligibility conditions for reduced and zero rates are set by HMRC; check your situation before invoicing.