Should you add VAT to a quote? (UK guide)

The short answer

• Not VAT registered: don't add VAT, and don't show a VAT line.
• VAT registered: add VAT at the right rate, and show the price, the VAT and the total.

When you must register for VAT

You must register for VAT if either of these applies:

• Your taxable turnover went over £90,000 in the last 12 months. It's a rolling 12 months, not the tax year.
• You expect your taxable turnover to go over £90,000 in the next 30 days alone.

That £90,000 threshold has applied since 1 April 2024. You can also register voluntarily below it. HMRC's Register for VAT guidance explains how and when.

If you're not registered

Don't charge VAT and don't show a VAT line, even at 0%. Your price is the total the customer pays. Charging VAT when you're not registered isn't allowed.

If you are registered

The standard rate is 20%. On the quote, show three figures so there's no doubt: the price, the VAT and the total to pay. Include your VAT number with your business details on your invoices.

Make the total clear for consumers

When you quote a consumer (a homeowner rather than a business), the total they'll pay must be clear, including VAT and any extra charges you know about. Consumer protection law, including the Digital Markets, Competition and Consumers Act 2024, requires the total price, or how it's worked out, to be clear when you invite a consumer to buy.

So avoid a headline price with "+ VAT" in small print, or extras that only appear on the invoice. If skip hire or certificates are extra, put them in the price or say clearly what they cost.

Reduced and zero rates

Some work is charged at a reduced rate or the zero rate instead of 20%, for example certain energy-saving installations, and work on new-build homes. The conditions are specific, so check HMRC's guidance for your type of work before you quote at anything other than the standard rate.

Worked example

A VAT-registered electrician quotes £7,200 for a full rewire:

• Price: £7,200
• VAT (20%): £1,440
• Total to pay, including VAT: £8,640

The customer knows exactly what they'll pay, and the VAT you'll account for to HMRC is clear.

VAT in Bojit

If you're VAT registered, switch VAT on in Bojit's Settings. Bojit then adds 20% to your quote price automatically, and shows the customer the price, the VAT and the total to pay, including VAT. If VAT is off, there's no VAT line: the price is the total.

Bojit doesn't currently print your VAT number on quotes or invoices, so check your invoices meet HMRC's VAT invoice rules before relying on them.

Sources

• GOV.UK: Register for VAT
• Business Companion (Trading Standards): providing price information

General guidance for UK tradespeople, not legal or tax advice.