Start with the global decision boundary
The global pricing framework still owns cost, contribution, margin, capacity and demand assumptions. UK VAT registration and rate classification are separate facts that can change invoice and price presentation without proving the underlying price is commercially viable.
Apply the exact local rule delta
| Local question | Reviewed source boundary | Planning action |
|---|---|---|
| Does registration require review? | HMRC publishes separate prior-12-month and expected next-30-day taxable-turnover tests around the reviewed GBP90,000 threshold. | Confirm current and expected taxable turnover against HMRC guidance. |
| Which VAT class applies? | HMRC distinguishes standard, reduced, zero-rated and exempt treatment. | Confirm the actual supply instead of assigning a default from the business label. |
| Is the displayed price VAT-inclusive? | At the reviewed 20% standard-rate scenario, inclusive and exclusive values differ. | Label the customer-facing and retained-revenue bases explicitly. |
Stop checks before using the scenario
- Confirm whether the business is registered or must review registration. (not complete)
- Confirm the supply and relevant territorial boundary. (not complete)
- Choose the reviewed VAT class from the actual facts. (not complete)
- Label every price and cost inclusive or exclusive of VAT. (not complete)
- Stop for official or professional review when treatment is unclear. (not complete)
Test a labelled local scenario
Local boundary example
This is a reproducible planning example using stated facts. It is not a market benchmark, eligibility decision, legal conclusion or tax calculation.
| Scenario item | Stated base case | Boundary or next check |
|---|---|---|
| Ex-VAT scenario price | GBP100 | User-selected business price before VAT; not a recommendation |
| Reviewed standard-rate scenario | 20% VAT; GBP120 inclusive | Use only after confirming the supply is standard-rated |
| Retained revenue for margin modelling | GBP100 before other costs | Input-credit and accounting treatment require separate facts |
Use the registered planner after the boundary is confirmed
- UK VAT-aware Pricing Planner
Set a retained margin across VAT-inclusive and VAT-exclusive price scenarios
Local boundary questions
- Does every UK business add 20% VAT?
- No. Registration and supply classification matter, and reduced, zero-rated or exempt treatment may apply. Confirm the facts against HMRC guidance.
- Does VAT change the global margin formula?
- No. It changes which retained-revenue and cost values belong in the calculation. Keep the tax layer and global economics visibly separate.
Reviewed official sources
- Register for VAT — HM Revenue & Customs: Registration threshold and time-window boundary.
- VAT rates — HM Revenue & Customs: Current rate classes and inclusive/exclusive presentation basis.