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Job price: labour plus marked-up materials plus VAT

N=Hr+Mc(1+μ100)V=N×v100T=N+V
where
N
price before VAT (£)
H
labour hours (h)
r
hourly labour rate (£/h)
Mc
materials cost net of VAT (£)
μ
markup on materials (%)
V
VAT (£)
v
VAT rate, 20% standard or 0 if not registered (%)
T
price including VAT (£)
Explain this equation

Builds a quote from your labour hours at your hourly rate, plus materials with a markup, plus VAT if you are VAT-registered.

H × r is the labour charge. Mc is what the paint and sundries cost you before VAT, and μ is the markup you add to cover collecting, storing and the risk of waste. v is the VAT rate, normally 20%, or 0 if you are not registered.

The price before VAT is labour plus marked-up materials. VAT is then a straight percentage of that total, and the customer pays both.

Sense check: 22 hours at £30 is £660; £180 of materials with 15% markup is £207; £867 before VAT, £1,040.40 with VAT.

Watch out: quote homeowners VAT-inclusive prices, and check whether the domestic reverse charge applies to work for VAT-registered contractors.

Builds a quote from labour hours at your rate plus marked-up materials, with VAT added if you are VAT-registered.

h
£/h
£
%
%

Enter your values to see the result.

Good to know

The UK standard rate of VAT is 20%. You must register when taxable turnover goes over £90,000 in any rolling 12 months (GOV.UK, checked November 2026); below that you charge no VAT unless voluntarily registered (set the rate to 0). Work for VAT-registered contractors under CIS may fall under the domestic reverse charge, so check HMRC guidance.

Common mistake

Quoting a homeowner "plus VAT" without making it clear. Consumers expect VAT-inclusive prices.

Limits

Simple build-up. Add access equipment, sundries, waste disposal and travel into materials or the rate.

Sources

Results are calculations from the published methods and figures shown, and depend on the data you enter. Coverage depends on the product, surface and application. Always follow the paint and wallcovering manufacturers’ data sheets and BS 6150 / BS 8000-12. Check prices and VAT with your own records and HMRC.

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