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ConstructionTools by SoftNext Solutions

VAT calculator for construction works contracts

Work out the VAT (Value Added Tax) on a construction works contract — enter the value, pick the rate, optionally split material and labour, and see the tax and total payable update live.

Net amount of the works contract, before tax.

Indicative VAT only. Reduced/zero rating and the domestic reverse charge may change your invoice — verify with an accountant.

Result

Contract value
£100,000.00
VAT
£20,000.00
Total payable (incl. VAT)
£120,000.00
VAT breakdown
Component Base Rate VAT
VAT on contract value £100,000.00 20% £20,000.00
Effective vat rate 20%

About the VAT calculator

What VAT rate applies to construction work in the UK?
Most construction work is standard-rated at 20%. A reduced 5% rate can apply to qualifying works such as certain residential conversions and energy-saving measures, and some supplies — like the construction of a new dwelling — can be zero-rated. The correct rate depends on the specific work; check the HMRC guidance or your accountant.
Does the domestic reverse charge affect this?
It can. For many B2B construction services the VAT domestic reverse charge shifts the VAT accounting to the customer, so the supplier does not add VAT to the invoice. This calculator shows the headline VAT on the value — your actual invoice treatment may differ. Verify with your accountant.
Is this VAT figure final?
No. It is indicative, for budgeting and cross-checking. The applicable rate, reverse-charge rules and your VAT registration status all affect the real figure. Always confirm with a qualified accountant before invoicing.

Disclaimer: This calculator provides indicative figures only and does not constitute tax advice. VAT treatment of construction work depends on the specifics of your contract and jurisdiction. Always confirm with a qualified tax professional before invoicing or filing.

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