iCalculator

VAT Returns Calculator

VAT Calculator

Instructions:

  1. Enter the description of the goods or service provided
  2. Enter the net sales price of the goods or service
  3. Select the VAT percentage rate to be applied
  4. Press Submit
  5. Repeate for all items, a running VAT total will be produced
  6. Once complete, email the results to yourself, your accountant etc.
VAT Returns Calculator [ 2017/18 Tax Year ]
VAT Returns Sheet by iCalculator
Goods/Service DescriptionValueVat RateVat ChargeTotal PriceRunning Total
Exc. VATInc. VAT

Email Illustration

Calculating VAT

Value Added Tax (VAT) is a tax that is applied against most services goods provided by VAT registered business in the UK.

How is VAT calculated? In order to calculate VAT you must apply a percentage of the goods/service to the orginal value.

VAT Calculation: v = s x r% where:

  • v: Value Added Tax (VAT) due on the goods/service
  • s: The sales price of the goods/service
  • r: The VAT rate applied again the goods/service

How much is VAT? VAT is categorised into three bands which are reffered to as rates. Typical language use: "VAT is payable at the Standard rate" meaning that 20% will be payable on the goods or service. The current VAT rates for the UK are shown in the table below.

Current VAT Rates [ 2017/18 Tax Year ]
VAT Rate Name VAT Rate % VAT Rate Applies to
VAT Rates 2017/18 Tax Year
Standard20%The majority of goods and services
Reduced rate5%A minority of goods and service, typically to support government household initiatives, an example being home energy
Zero rate0%Zero rated goods and services include food and childrens clothes

VAT Calculations

The following calculations show how VAT is calculated in the UK.

VAT Example 1:

How much VAT is due on electricity (for domestic and residential use or for non-business use by a charity)?

VAT Example 1: VAT due on electricity
Electricity Charge VAT Rate % VAT Amount Total cost of electricity used
VAT Example 1 for 2017/18 Tax Year
£360.005%£18.00£378.00

VAT Example 2:

How much VAT is due on books, magazines, newspapers and publications? VAT on books et al is zero-rated so VAT is apllied at 0%.

VAT Example 2: VAT due on books, magazines, newspapers and publications
Book VAT Rate % VAT Amount Total cost of book
VAT Example 2 for 2017/18 Tax Year
£7.990%nil£7.99

VAT Example 3:

How much VAT is due on a new iPhone? VAT will be payable at 20% on a new iPhone

VAT Example 3: VAT due on a new iPhone
iPhone VAT Rate % VAT Amount Total cost of new iPhone
VAT Example 3 for 2017/18 Tax Year
£540.0020%£108.00£648.00

VAT Registration

If you run a business, you have to register for VAT when your tunrover exceeds the VAT threshold. This includes goods, services and any imports that you may be involved with as part of your business. The VAT Threshold for 2014/15 is £81,000.00.

You can voluntarily register for VAT if your turnover is less than the VAT theshold. This is beneficial to some companies but consider your options first. You will need to ensure you complete your VAT returns in a timely manner, the VAT man is normally neither flexability or understanding! If you do register for VAT, ensure you use a robust accountancy like Accounts Direct. The accountancy then completes the VAT returns for you, removing potentail headaches and stress especially if you are a one person business.

VAT Registration Number

The VAT registration number is a unique 9 digit number that will be issued to your registered business address once you succesfully been approved for VAT.

VAT Registrered Address

Most companies use their companies address as their VAT address though you may use your accountants address if they are handling all the VAT work for you. If this is the case you should ensure that all your VAT receipts are passed to your accountants with sufficient time to complete the periodic VAT return.

VAT Registration Cost

There are no costs associated with registering for VAT though an accountancy firm may charge your for their time and services if they file for VAT on your behalf.

Online VAT Registration

HMRC has moved the najority of its services online now which have simplified business set up times and reduced set-up costs. You can register for VAT online but you must first have registered to use the Government Gateway. The Governement Gateway is a central portal that allows individuals and businesses to access a wealth of tax and payroll related tools. Registering to use the Government Gateway is free but validation codes can take several weeks to arrive.

VAT Returns

Tax and accounting can seem overly complex, what most people need is VAT Returns explained in simple terms that allow correct registration, understanding of the VAT process and compliant and timely tax returns.

The deadline for submitting your VAT returns is normally one calendar month and seven days after the end of your VAT period, this will be displayed on your online return. You must submit your return so that HMRC receives it before the VAT deadline.

VAT Forms

VAT Forms
Form No. Form title Form Description
VAT Forms for 2017/18 Tax Year
VAT 1VAT - Application for Registration[Download Form]
VAT 1AVAT - Application for Registration - Distance Selling[Download Form]
VAT 1BVAT - Application for Registration - Acquisitions[Download Form]
VAT 1CVAT Registration Notification[Download Form]
VAT 2VAT - Partnership Details[Download Form]
VAT 5LVAT Registration - Land and Property[Download Form]

VAT Payments

VAT Payments are typically paid quarterly as VAT Returns are made quaretely. You can request a non-standard VAT period.