• Posted 9th August 2015

How to Work out VAT on a Calculator

Value Added Tax (VAT) is charged on most goods and services purchased from the VAT registered businesses at standard rate of 20% in the UK. In addition, goods and some services that are imported from countries outside the European Union (EU), and brought into the UK are also charged with VAT. Apart from the standard rate, there are other rates which apply to the goods and services. A reduced rate of 5% is applied on domestic fuel and power, residential conversions, children's car seats, etc. Likewise, a zero rate is applied on most food except meals in restaurant, children’s clothing, books and newspapers. If your business has VAT taxable turnover of more than £82, 0000 in the UK, then you must register for VAT. After you register, you are required to pay the any VAT due to HM Revenue and Customs (HMRC) at the right time. On top of that, you can also reclaim the VAT amount you have paid on certain purchases before you have registered. To calculate your Value Added Tax, you can use online VAT calculator. Such free online calculator is created to produce 100% accurate results provided with the right details. So, all you need to do is put the right amount in the right box to get the correct figures. Then after, this calculator will provide you the right amount of tax you owe by taking rates applicable into account. If you do not calculate your VAT amount accurately, it can lead to VAT accounting errors which can result in penalties and you can lose your hard earned money. Sometimes, errors can also result in prosecution. Thus, if you need help to work out your VAT or have any further queries about VAT issues that is affecting your business, feel free to contact our expert VAT consultants at 020 7060 9556.