Tool
The VAT gap calculator.
Put in the value of the works and see the VAT at each rate, side by side. Add the items that always stay at 20% for a more realistic picture.
These stay at 20% whatever the project. Leave at 0 if you are not sure.
- Gap between 20% and 5%
- £30,000
- Gap between 20% and 0%
- £40,000
An illustration of scale, not a figure for your project. Whether a lower rate applies, and to which items, is what the analysis establishes.
Quick sums
Add or remove VAT at 5% or 20%.
For checking a single figure on a quote or an invoice.
- Net
- £10,000.00
- VAT
- £500.00
- Total
- £10,500.00
Questions
How the sums work.
How do I calculate 5% VAT?
Multiply the net amount by 0.05. On £10,000 of work, 5% VAT is £500, making £10,500 in total. To find the VAT inside a total that already includes 5% VAT, divide the total by 21. On £10,500, that is £500.
How do I work out the VAT in a price that includes 20%?
Divide the total by 6. On £12,000 including VAT, the VAT is £2,000 and the net amount is £10,000.
Does the lower rate apply to materials as well as labour?
Yes, when the builder supplies and fits them as part of qualifying work. Building materials take the same rate as the labour. Carpets, appliances and most fitted furniture are excluded and stay at 20%, which is why the calculator lets you separate them.
Will my project get the lower rate?
The calculator cannot tell you that. It shows what the difference would be worth. Whether a lower rate applies depends on the building, the work and the evidence, and that is what an analysis establishes.
Next step
The calculator shows what the gap is worth. We establish whether it is yours.
Send us the builder's quote and we will tell you whether a lower rate looks worth pursuing.
- Fixed fee, agreed up front
- Every rate tied to the legislation
- We'll tell you if it's 20%