Answers · UK 2025/26

How much is VAT on £1,000 in the UK?

UK VAT at the standard 20% rate on £1,000 (net) is £200, giving a gross price of £1,200. Working backwards from a £1,000 gross (VAT-inclusive) price: the VAT element is £166.67 and the net price is £833.33.

Last updated: 10 July 2026Last reviewed: 10 July 2026How we verify

Full answer

Calculating 20% VAT on £1,000 in the UK. Adding VAT to a net price: £1,000 net x 0.20 = £200 VAT, giving a gross (VAT-inclusive) price of £1,200. Extracting VAT from a gross price: £1,200 gross x (1/6) = £200 VAT, and £1,200 / 1.20 = £1,000 net, confirming the figures in reverse. If instead £1,000 is already a VAT-inclusive gross price, the VAT element is £1,000 / 6 = £166.67, and the net price is £1,000 / 1.20 = £833.33. This is a common point of confusion: whether a quoted price already includes VAT changes the maths, so always check whether an invoice or quote states 'plus VAT' (net, add 20%) or is silent on VAT treatment for a consumer-facing price (usually gross, extract using divide by 6 or divide by 1.2). Reduced rate 5% (domestic energy, children's car seats, mobility aids) on £1,000 net gives £50 VAT. Zero rate (0%) applies to most food, books, newspapers, children's clothes and prescription medicines. Only VAT-registered businesses charge VAT, and registration is required once taxable turnover exceeds £90,000 in a rolling 12-month period. Use the VAT calculator to add or remove VAT from any amount.