Answers · UK 2025/26
How much is 20% VAT on £20,000?
20% VAT on £20,000 is £4,000. The VAT-inclusive (gross) price would be £24,000. To extract VAT from a VAT-inclusive price, divide by 6 (£24,000 ÷ 6 = £4,000). To add VAT to a net price, multiply by 0.2 or by 1.2 to get the gross.
Full answer
Calculating 20% VAT in the UK. Adding VAT to a net price: Net price × 0.20 = VAT amount. Net price × 1.20 = gross (VAT-inclusive) price. Example: £20,000 net × 1.20 = £24,000 gross; VAT = £4,000. Extracting VAT from a gross (VAT-inclusive) price: Gross ÷ 6 = VAT amount (because 20/120 = 1/6). Gross ÷ 1.20 = net price. Example: £24,000 gross ÷ 6 = £4,000 VAT; £24,000 ÷ 1.20 = £20,000 net. Common VAT calculations: £5,000 net: VAT £1,000, gross £6,000. £10,000 net: VAT £2,000, gross £12,000. £50,000 net: VAT £10,000, gross £60,000. £100,000 net: VAT £20,000, gross £120,000. UK VAT rates: standard rate 20% (most goods and services); reduced rate 5% (domestic energy, children's car seats, stop-smoking products); zero rate 0% (most food, children's clothing, books, public transport). VAT-exempt supplies (no VAT charged, no input VAT reclaimed): insurance, financial services, education, health. If you are VAT-registered, you must charge VAT and submit quarterly VAT returns. Use our VAT calculator to calculate VAT forward and reverse.
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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.