This calculator will help you to work out how much VAT you'll need to pay on top of a builder's quote or on other purchases...
0){ document.f1.total_vat.value = x_vat*(0.2); document.f1.total_bill.value = x_vat*(1.2); trunc(document.f1.total_vat); trunc(document.f1.total_bill); } if(total_price>0){ document.f1.actual_cost.value = total_price/(1.2); document.f1.total_vat_paid.value = total_price - total_price/(1.2); trunc(document.f1.total_vat_paid); trunc(document.f1.actual_cost); } return false; } function browserOK(){ var b_ok = true; b_ok = b_ok && (navigator.appName.indexOf("Microsoft")!= -1); b_ok = b_ok && parseInt(navigator.appVersion.substring(0,1))>=4; return (b_ok); } function trunc(formElement){ var sValue = formElement.value; formElement.value = Math.round(sValue*100)/100; } //-->
Different rates of VAT apply to different goods and services. There are currently three rates - the standard 20% (increased from 17.5% on 4 January 2011), a reduced rate charged at 5% and zero rate. VAT could be theoretically applied to the goods in the latter category, but the Government chooses not to do so at present. There is a separate category of items, known as 'exempt', which are not covered at all by the VAT regime. They have been kept out for various historical reasons.
Reduced-rate items
Domestic fuel and power Installation of energy-saving materials Residential conversions Women's sanitary products Children's car seats
Zero-rated items
Food - except meals in restaurants Books and newspapers Children's clothing and shoes, public transport.
VAT exempt
Insurance Providing credit Some education and training Fundraising events by charities Subscriptions to membership organisations Betting and gaming