SME Accounting
Accounting solutions for UK small businesses.
A free UK VAT calculator below. Then the case for picking proper, MTD-ready accounting software — and the one we'd hand to a friend.
In one paragraph
If you run a UK small business, you'll spend today doing the maths,and tomorrow filing it with HMRC.Calculator below for today. Software recommendation for tomorrow.
Tool 01
UK VAT
calculator
Add VAT to a net price, or extract it from a gross price. Standard rate, reduced rate and zero rate covered.
Mode
Rate
Result
- Net£0.00
- VAT (20%)£0.00
- Gross£0.00
Filing VAT returns? You'll need MTD-compatible software — our pick is below. Prefer this calculator on its own page? It has one.
Background
VAT in the UK,
briefly
The basics every UK small business should understand before choosing accounting software. None of this is legal advice — speak to your accountant for that.
- № 01
Registration threshold
Mandatory once taxable turnover passes £90,000 in any rolling twelve-month period (raised from £85,000 in April 2024). Many businesses register voluntarily below this when most of their customers are VAT-registered.
- № 02
Making Tax Digital
VAT-registered businesses must keep digital records and submit returns via MTD-compatible software. ITSA MTD rolls out to sole traders and landlords from April 2026. Spreadsheets alone don't qualify — you need software with a digital link to HMRC.
- № 03
Flat Rate Scheme
Businesses with turnover under £150,000 can opt into the Flat Rate Scheme, paying VAT at a single industry-specific percentage of gross turnover. Simpler bookkeeping, but not always cheaper — check the maths against standard accounting first.
The pick
Pick MTD-ready
software
For day-to-day VAT maths the calculator above is plenty. For HMRC-facing work — VAT returns, payroll, Self Assessment — you need MTD-compatible software with a digital link to HMRC.
Recommended — № 01
FreeAgent
Built in Edinburgh. Owned by NatWest. Free for NatWest, RBS and Mettle business banking customers. Designed around UK rules — VAT returns, Self Assessment, CIS, Corporation Tax. The most "UK-native" option in a market dominated by international tools.
If you're a sole trader or freelancer who wants something lighter, Coconut and ANNA Money bundle a business account with bookkeeping and tax in one app.
Why we recommend it
- MTD-compatible VAT and Self Assessment
- Free for NatWest, RBS and Mettle banking customers
- Bank feeds, invoicing, expenses, payroll add-on
- UK-only product, UK-based support
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Last word