5% is the UK's reduced VAT rate. The 5% reduced rate applies to items such as domestic fuel and power (household gas and electricity), children's car seats and certain energy-saving materials — check gov.uk for the full list. The calculator below starts at 5% — add VAT to a net price or strip it from a gross one.
Enter your data
Choose whether to add VAT to a net amount or extract it from a gross total. The default rate is 20%.
The standard UK rate is 20%, with a reduced rate of 5% (e.g. domestic energy, children's car seats) and a zero rate of 0% (most food, children's clothes, books, newspapers).
100.00 + 5.00% VAT = 105.00 £To add 5% VAT, multiply the net amount by 1.05: £1,000 net → VAT £50.00, gross £1,050.00. To remove VAT from a gross price, divide by 1.05.
The 5% reduced rate applies to items such as domestic fuel and power (household gas and electricity), children's car seats and certain energy-saving materials — check gov.uk for the full list. The 5% reduced rate on domestic fuel and power dates from 1997, when it was cut from 8%.
| Net amount | VAT | Gross total |
|---|---|---|
| 100.00 | 5.00 | 105.00 |
| 250.00 | 12.50 | 262.50 |
| 500.00 | 25.00 | 525.00 |
| 1,000.00 | 50.00 | 1,050.00 |
| 2,500.00 | 125.00 | 2,625.00 |
| 5,000.00 | 250.00 | 5,250.00 |
Multiply the net by 1.05 for the gross, or by 0.05 for the VAT alone. Example: £1,000 → VAT £50.00, gross £1,050.00.
The 5% reduced rate applies to items such as domestic fuel and power (household gas and electricity), children's car seats and certain energy-saving materials — check gov.uk for the full list.
1/21 — divide a gross price by 21 to get the VAT inside it (5/105 = 1/21). Example: a £105 gross bill contains £5 of VAT.
Household gas and electricity were moved to a reduced rate in the 1990s (8%, then 5% from 1997) as a social measure; business energy generally stays at 20%.
Divide the gross by 1.05. Example: £1,050.00 gross → net £1,000.00, VAT £50.00.