Act on the result
Compare the required displayed price with the current customer price and document the confirmed tax basis.
Educational only: Business decision support, not accounting, tax or legal advice.
Privacy: No account is required. Tool inputs and results stay in this browser. Anonymous categorical usage analytics send only governed page, tool, cluster and action identifiers; tool inputs and results are never sent. Error monitoring is disabled. Optional saved state stays only on this device.
Update policy: Reviewed when formulas or official dependencies change.
Scope: UK small-business planning using your own assumptions.
What this planner helps you decide
Best for
Businesses checking a customer price against confirmed UK VAT treatment.
Outputs
Required retained and displayed prices, tax component, gross profit, gross margin and current-price gap.
Start here
Confirm the taxable-sale scope and applicable rate, then enter cost and target retained margin.
Use a different tool when: Do not use this to set a price for a target gross margin; use Target Margin & Pricing Planner for that decision. Use this tool to set a retained margin across VAT-inclusive and VAT-exclusive price scenarios.
Price & margin
UK VAT-aware Pricing: required retained and displayed prices
Required retained and displayed prices, tax component, gross profit, gross margin and current-price gap.
VAT-aware price assumptions
Use one VAT basis. Inputs do not determine tax.
Your numbers stay in this browser
Enter per-unit cost on the selected VAT basis.
Gross profit share retained before VAT.
Exempt and unknown supplies fail closed.
Optional comparisonAdd a comparison value only when it helps your decision.
Optional comparison price on the selected VAT basis.
Tax treatmentKeep the warning when treatment is uncertain.
Confirm whether the entered cost includes tax.
Special Northern Ireland cases fail closed.
Enter turnover for this exact measured period.
Enter turnover for this separate measured period.
Choose the confirmed status; uncertainty keeps an authority warning visible.
Choose No when tax paid remains in effective cost.
Required for recoverable VAT in a tax-inclusive cost; separate from output rate.
Controls whether displayed price adds tax to retained revenue.
Price decision
Protect the entered retained margin on revenue excluding VAT; treat the customer-facing tax amount separately.
PDF and CSV exports stay on this device. Clean page links contain no inputs.
- Required displayed price
- £120.00
- Required price excluding VAT
- £100.00
- VAT component
- £20.00
- Effective cost
- £60.00
- Gross profit per unit
- £40.00
- Retained gross margin
- 40.0%
- Change from current displayed price
- £20.00
Official policy review signals
- Selected VAT rate
- 20.0%
- Prior 12 months taxable turnover
- Below review threshold
- Expected next 30 days taxable turnover
- Below review threshold
These are separate source-based review signals, not a registration conclusion.
Rate row: Standard-rated — 20%; effective basis: Rate source version 2026-07-16; rate source version: 2026-07-16. Threshold basis: Threshold source version 2026-07-16; threshold source version: 2026-07-16.
Price sensitivity
Price sensitivity — compare required displayed price for the entered target margin and a five-point margin increase.
ScenarioResultDifference
Entered scenario£120.00Baseline
Target margin +5 points£130.91£10.91
Save these results, change an input, then compare the updated figures with this baseline.
The baseline is temporary in this tab and is not added to shared scenario links or generated reports.
Registration review
Compare threshold headroom with turnover 10% higher.
ScenarioResultDifference
Entered scenario£90,000.00Baseline
Second turnover view +10%£90,000.00£0.00
Save these results, change an input, then compare the updated figures with this baseline.
The baseline is temporary in this tab and is not added to shared scenario links or generated reports.
Calculation details
View calculation detailsView the formulas and inputs used for these results.
Required displayed price
Effective cost
recoverable: tax-inclusive cost ÷ (1 + input rate), tax-exclusive cost unchanged; non-recoverable: tax-inclusive cost unchanged, tax-exclusive cost × (1 + input rate)60 GBPRequired price excluding VAT
effective cost ÷ (1 − target retained margin)100 GBPRequired displayed price
registered and tax-inclusive display → retained price × (1 + entered VAT rate); otherwise retained price120 GBPResult£120.00
Uses Standard-rated — 20% (Rate source version 2026-07-16), source version 2026-07-16; threshold status uses Threshold source version 2026-07-16, Prior 12 months taxable turnover and Expected next 30 days taxable turnover, source version 2026-07-16. Retained revenue excludes VAT. The engine retains full precision; currency displays to two decimal places.
UK VAT-aware Pricing Planner formulas →Inputs used by these formula steps
- Effective costCost Exclusive
- 60
- Effective costTax Rate
- 0.2
- Effective costInput Tax Rate
- 0.2
- Effective costCost Tax Basis
- Tax-exclusive cost
- Effective costInput Tax Recoverable
- Yes
- Effective costRegistration State
- Registered
- Required price excluding VATEffective Cost
- 60
- Required price excluding VATTarget Margin
- 0.4
- Required displayed priceRequired Price Exclusive
- 100
- Required displayed priceTax Rate
- 0.2
- Required displayed priceDisplayed Price Includes Tax
- Yes
Required price excluding VAT
Effective cost
recoverable: tax-inclusive cost ÷ (1 + input rate), tax-exclusive cost unchanged; non-recoverable: tax-inclusive cost unchanged, tax-exclusive cost × (1 + input rate)60 GBPRequired price excluding VAT
effective cost ÷ (1 − target retained margin)100 GBPResult£100.00
Uses Standard-rated — 20% (Rate source version 2026-07-16), source version 2026-07-16; threshold status uses Threshold source version 2026-07-16, Prior 12 months taxable turnover and Expected next 30 days taxable turnover, source version 2026-07-16. Retained revenue excludes VAT. The engine retains full precision; currency displays to two decimal places.
UK VAT-aware Pricing Planner formulas →Inputs used by these formula steps
- Effective costCost Exclusive
- 60
- Effective costTax Rate
- 0.2
- Effective costInput Tax Rate
- 0.2
- Effective costCost Tax Basis
- Tax-exclusive cost
- Effective costInput Tax Recoverable
- Yes
- Effective costRegistration State
- Registered
- Required price excluding VATEffective Cost
- 60
- Required price excluding VATTarget Margin
- 0.4
VAT component
Required price excluding VAT
effective cost ÷ (1 − target retained margin)100 GBPRequired displayed price
registered and tax-inclusive display → retained price × (1 + entered VAT rate); otherwise retained price120 GBPVAT component
displayed price − retained price20 GBPResult£20.00
Uses Standard-rated — 20% (Rate source version 2026-07-16), source version 2026-07-16; threshold status uses Threshold source version 2026-07-16, Prior 12 months taxable turnover and Expected next 30 days taxable turnover, source version 2026-07-16. Retained revenue excludes VAT. The engine retains full precision; currency displays to two decimal places.
UK VAT-aware Pricing Planner formulas →Inputs used by these formula steps
- Required price excluding VATEffective Cost
- 60
- Required price excluding VATTarget Margin
- 0.4
- Required displayed priceRequired Price Exclusive
- 100
- Required displayed priceTax Rate
- 0.2
- Required displayed priceDisplayed Price Includes Tax
- Yes
- VAT componentRequired Displayed Price
- 120
- VAT componentRequired Price Exclusive
- 100
Effective cost
Effective cost
recoverable: tax-inclusive cost ÷ (1 + input rate), tax-exclusive cost unchanged; non-recoverable: tax-inclusive cost unchanged, tax-exclusive cost × (1 + input rate)60 GBPResult£60.00
Uses Standard-rated — 20% (Rate source version 2026-07-16), source version 2026-07-16; threshold status uses Threshold source version 2026-07-16, Prior 12 months taxable turnover and Expected next 30 days taxable turnover, source version 2026-07-16. Retained revenue excludes VAT. The engine retains full precision; currency displays to two decimal places.
UK VAT-aware Pricing Planner formulas →Inputs used by these formula steps
- Effective costCost Exclusive
- 60
- Effective costTax Rate
- 0.2
- Effective costInput Tax Rate
- 0.2
- Effective costCost Tax Basis
- Tax-exclusive cost
- Effective costInput Tax Recoverable
- Yes
- Effective costRegistration State
- Registered
Gross profit per unit
Effective cost
recoverable: tax-inclusive cost ÷ (1 + input rate), tax-exclusive cost unchanged; non-recoverable: tax-inclusive cost unchanged, tax-exclusive cost × (1 + input rate)60 GBPRequired price excluding VAT
effective cost ÷ (1 − target retained margin)100 GBPGross profit per unit
retained revenue − effective cost40 GBPResult£40.00
Uses Standard-rated — 20% (Rate source version 2026-07-16), source version 2026-07-16; threshold status uses Threshold source version 2026-07-16, Prior 12 months taxable turnover and Expected next 30 days taxable turnover, source version 2026-07-16. Retained revenue excludes VAT. The engine retains full precision; currency displays to two decimal places.
UK VAT-aware Pricing Planner formulas →Inputs used by these formula steps
- Effective costCost Exclusive
- 60
- Effective costTax Rate
- 0.2
- Effective costInput Tax Rate
- 0.2
- Effective costCost Tax Basis
- Tax-exclusive cost
- Effective costInput Tax Recoverable
- Yes
- Effective costRegistration State
- Registered
- Required price excluding VATEffective Cost
- 60
- Required price excluding VATTarget Margin
- 0.4
- Gross profit per unitRetained Revenue
- 100
- Gross profit per unitEffective Cost
- 60
Retained gross margin
Gross profit per unit
retained revenue − effective cost40 GBPRetained gross margin
gross profit ÷ retained revenue40%Result40.0%
Uses Standard-rated — 20% (Rate source version 2026-07-16), source version 2026-07-16; threshold status uses Threshold source version 2026-07-16, Prior 12 months taxable turnover and Expected next 30 days taxable turnover, source version 2026-07-16. Retained revenue excludes VAT. The engine retains full precision; currency displays to two decimal places.
UK VAT-aware Pricing Planner formulas →Inputs used by these formula steps
- Gross profit per unitRetained Revenue
- 100
- Gross profit per unitEffective Cost
- 60
- Retained gross marginGross Profit
- 40
- Retained gross marginRetained Revenue
- 100
Change from current displayed price
Required displayed price
registered and tax-inclusive display → retained price × (1 + entered VAT rate); otherwise retained price120 GBPChange from current displayed price
required displayed price − current displayed price20 GBPResult£20.00
Uses Standard-rated — 20% (Rate source version 2026-07-16), source version 2026-07-16; threshold status uses Threshold source version 2026-07-16, Prior 12 months taxable turnover and Expected next 30 days taxable turnover, source version 2026-07-16. Retained revenue excludes VAT. The engine retains full precision; currency displays to two decimal places.
UK VAT-aware Pricing Planner formulas →Inputs used by these formula steps
- Required displayed priceRequired Price Exclusive
- 100
- Required displayed priceTax Rate
- 0.2
- Required displayed priceDisplayed Price Includes Tax
- Yes
- Change from current displayed priceRequired Displayed Price
- 120
- Change from current displayed priceCurrent Displayed Price
- 100
Selected VAT rate
Selected VAT rate
official policy rate selected by confirmed jurisdiction, supply class and effective period0.2Result20.0%
Uses Standard-rated — 20% (Rate source version 2026-07-16), source version 2026-07-16; threshold status uses Threshold source version 2026-07-16, Prior 12 months taxable turnover and Expected next 30 days taxable turnover, source version 2026-07-16. Retained revenue excludes VAT. The engine retains full precision; currency displays to two decimal places.
UK VAT-aware Pricing Planner formulas →Inputs used by these formula steps
- Selected VAT rateJurisdiction
- Great Britain
- Selected VAT rateSupply Class
- Standard-rated — 20%
- Selected VAT rateEffective Period
- —
- Selected VAT ratePolicy Rate Row
- Standard-rated — 20%
- Selected VAT rateEffective Date
- Rate source version 2026-07-16
- Selected VAT rateSource Version
- 2026-07-16
Prior 12 months taxable turnover
Prior 12 months taxable turnover
entered period turnover compared with the source-versioned review thresholdBelow review thresholdResultBelow review threshold
Uses Standard-rated — 20% (Rate source version 2026-07-16), source version 2026-07-16; threshold status uses Threshold source version 2026-07-16, Prior 12 months taxable turnover and Expected next 30 days taxable turnover, source version 2026-07-16. Retained revenue excludes VAT. The engine retains full precision; currency displays to two decimal places.
UK VAT-aware Pricing Planner formulas →Inputs used by these formula steps
- Prior 12 months taxable turnoverTurnover
- 0
- Prior 12 months taxable turnoverThreshold
- 90,000
- Prior 12 months taxable turnoverMeasured Period
- Prior 12 months taxable turnover
- Prior 12 months taxable turnoverSource Version
- 2026-07-16
Expected next 30 days taxable turnover
Expected next 30 days taxable turnover
entered period turnover compared separately with the source-versioned review thresholdBelow review thresholdResultBelow review threshold
Uses Standard-rated — 20% (Rate source version 2026-07-16), source version 2026-07-16; threshold status uses Threshold source version 2026-07-16, Prior 12 months taxable turnover and Expected next 30 days taxable turnover, source version 2026-07-16. Retained revenue excludes VAT. The engine retains full precision; currency displays to two decimal places.
UK VAT-aware Pricing Planner formulas →Inputs used by these formula steps
- Expected next 30 days taxable turnoverTurnover
- 0
- Expected next 30 days taxable turnoverThreshold
- 90,000
- Expected next 30 days taxable turnoverMeasured Period
- Expected next 30 days taxable turnover
- Expected next 30 days taxable turnoverThreshold Rule Period
- Threshold source version 2026-07-16
- Expected next 30 days taxable turnoverSource Version
- 2026-07-16
Inputs used
- Cost amount
- 60
- Target retained margin
- 0.4
- VAT registration state
- Registered
- Can input VAT be recovered?
- Yes
- Confirmed input VAT rate
- 0.2
- Does the displayed price include VAT?
- Yes — show price including VAT
- Current displayed price
- 100
- Prior 12 months taxable turnover
- 0
- Expected next 30 days taxable turnover
- 0
- Cost tax basis
- Tax-exclusive cost
- VAT jurisdiction
- Great Britain
- VAT supply class
- Standard-rated — 20%
Open this calculator with preset values
This calculator supports documented, shareable scenario URLs. Compatible assistants and applications can construct links using the parameters below.
Scenario links contain only allowlisted numeric and closed-choice inputs shown in the URL; Margin101 excludes free text and identifying fields. Anyone you share the URL with can read those numbers, so do not include private or identifying data.
| Parameter | Meaning | Unit | Allowed values | Presence | Default |
|---|---|---|---|---|---|
| costExclusive | Enter per-unit cost on the selected VAT basis. | GBP/unit on the selected VAT cost basis | 0 to 10000000 | Required | 60 |
| costTaxBasis | Confirm whether the entered cost includes tax. | — | 0 (Tax-exclusive cost), 1 (Tax-inclusive cost) | Required | Tax-exclusive cost |
| currentDisplayedPrice | Optional comparison price on the selected VAT basis. | GBP/unit on the selected displayed-price VAT basis | 0 to 10000000 | Optional | 100 |
| displayedPriceIncludesTax | Controls whether displayed price adds tax to retained revenue. | — | 1 (Yes — show price including VAT), 0 (No — show price excluding VAT) | Required | Yes — show price including VAT |
| inputTaxRate | Required for recoverable VAT in a tax-inclusive cost; separate from output rate. | decimal input VAT rate on the entered cost | 0 to 1 | Required | 0.2 |
| inputTaxRecoverable | Choose No when tax paid remains in effective cost. | — | 1 (Yes), 0 (No) | Required | Yes |
| jurisdictionCode | Special Northern Ireland cases fail closed. | — | 1 (Great Britain), 0 (Northern Ireland or special case — unsupported) | Required | Great Britain |
| registrationState | Choose the confirmed status; uncertainty keeps an authority warning visible. | — | 1 (Registered), 0 (Not registered), 2 (Not sure — check the authority rules) | Required | Registered |
| supplyClassCode | Exempt and unknown supplies fail closed. | — | 1 (Standard-rated — 20%), 2 (Reduced-rate — 5%), 3 (Confirmed zero-rated), 0 (Exempt or unknown — unsupported) | Required | Standard-rated — 20% |
| targetMargin | Gross profit share retained before VAT. | decimal gross-margin rate on VAT-exclusive retained revenue | 0 to 0.95 | Required | 0.4 |
| thresholdPrimary | Enter turnover for this exact measured period. | GBP of taxable turnover/prior 12 months | 0 to 10000000 | Required | 0 |
| thresholdSecondary | Enter turnover for this separate measured period. | GBP of expected taxable turnover/next 30 days | 0 to 10000000 | Required | 0 |
UK VAT-aware Pricing: required retained and displayed prices
Use the displayed-price result only after confirming the sale classification, registration position and applicable rate.
Formula summary
- Primary formula
- retained price excluding VAT = effective cost ÷ (1 − target retained margin)
Data used here
- Great Britain VAT registration threshold tests: HM Revenue & Customs; verified; checked 2026-07-16.
- Great Britain VAT rate classes: HM Revenue & Customs; verified; checked 2026-07-16.
Decision checks
Stress-test the decision
Retest a higher cost and verify whether input tax is recoverable before changing a live price.
Assumptions and sources
- Great Britain VAT registration threshold tests
- HMRC VAT registration guidance Checked 2026-07-16.
Primary source → - Great Britain VAT rate classes
- HMRC current VAT rates Checked 2026-07-16.
Primary source →
When this estimate can be misleading
- This planner does not determine VAT registration, taxability, exemptions, recoverability, place of supply, nexus or filing liabilities.
- The reviewed VAT rate is selected only from supported jurisdiction, supply-class and effective-period branches; unsupported cases stop instead of guessing.
- The turnover comparisons are review signals from official period rules, not registration conclusions or effective-date advice.
- Gross profit is a per-unit pricing measure before fixed costs, overhead allocation, income tax, financing and demand effects.
- Current displayed price must use the same inclusive or exclusive tax basis selected in the planner.
- Use the displayed-price result only after confirming the sale classification, registration position and applicable rate.
Educational estimate, not advice. See all assumptions & limitations →
Related reading
Guides to interpret the decision and its assumptions.
- UK VAT-Aware Pricing: Registration and Price Presentation
Keep the business economics separate from UK VAT registration, rate classification and inclusive-price presentation checks.
Read guide
Frequently asked questions
How do I set a retained margin across VAT-inclusive and VAT-exclusive price scenarios?
Compare the required displayed price with the current customer price and document the confirmed tax basis.
Does Margin101 choose the applicable VAT rate?
No. The reviewed default applies only to the documented taxable-supply scenario. Confirm the rate and treatment for the actual sale.
Does Margin101 store my numbers?
Tool inputs and results stay in this browser. Anonymous categorical usage analytics send only governed page, tool, cluster and action identifiers; tool inputs and results are never sent. Error monitoring is disabled. Optional saved state stays only on this device.
Is this tax or accounting advice?
No. It is an educational pricing scenario. Check the actual transaction with the relevant authority or a qualified adviser.
Which planning assumptions should I stress-test?
Compare a plausible alternative scenario and verify the decision-critical assumption that changes the plan most.