Answers · UK 2025/26
How much is VAT on £100 in the UK?
UK VAT at standard 20% on £100 (net) is £20 — total £120. Working backwards: £100 gross already includes £16.67 VAT (1/6 of total). Reduced rate 5%: £5 on £100 net. Zero rate items: £0 VAT.
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UK VAT 2025/26 worked examples. Standard 20%: £100 net + £20 VAT = £120 gross. £100 gross ÷ 1.20 = £83.33 net + £16.67 VAT. Reduced 5% (domestic gas/electricity, children's car seats, energy-saving materials): £100 net + £5 VAT = £105 gross. £100 gross ÷ 1.05 = £95.24 net + £4.76 VAT. Zero rate (most food, children's clothes, books, prescription drugs): £0 VAT. Exempt (insurance, postal services, education, health): no VAT charged, supplier cannot reclaim input VAT. To remove VAT from gross: gross × (1/6) for 20%, gross × (1/21) for 5%. Common errors: applying 20% to gross gives wrong VAT — it gives 16.67% of gross. Always specify VAT-inclusive vs VAT-exclusive.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.