VAT on £10
Add or remove VAT at 20%, 5%, 0% on £10, with the net, VAT and gross figures.
Adding 20% VAT to £10 gives £12.00, of which £2.00 is VAT. Removing 20% VAT from £10 gives £8.33 net, with £1.67 of VAT inside the price. At the 5% reduced rate the VAT is £0.50 when added and £0.48 when removed; at 0% nothing changes.
£10 at every VAT rate
| Calculation | Net | VAT | Gross |
|---|---|---|---|
| Add 20% | £10.00 | £2.00 | £12.00 |
| Remove 20% | £8.33 | £1.67 | £10.00 |
| Add 5% | £10.00 | £0.50 | £10.50 |
| Remove 5% | £9.52 | £0.48 | £10.00 |
| Add 0% | £10.00 | £0.00 | £10.00 |
| Remove 0% | £10.00 | £0.00 | £10.00 |
What £10 looks like with and without VAT
A £10 purchase is the kind of thing that ends up as a receipt in a drawer: fuel, stationery, a parking charge, a working lunch. If the receipt shows a VAT number and the price includes VAT, then £1.67 of that £10 is tax you can reclaim on your return, leaving a net cost of £8.33. Without a valid VAT receipt you can still claim the £10 as an expense against profit, but not the VAT itself.
Working the other way, if you quote £10 before VAT and you are VAT registered, the customer pays £12.00: your £10 plus £2.00 that you collect for HMRC. At the 5% reduced rate, which applies to things like domestic energy and children's car seats, the same £10 becomes £10.50. Zero-rated items such as most food, books and children's clothing stay at £10 on the invoice, though they still count as taxable sales.
The 20% figures catch people out because the VAT inside a gross price is not 20% of the price. It is 20% of the net, which works out at 16.67% of the gross. So £10 including VAT contains £1.67, not £2.00. Keep that in mind when you are checking a till receipt or splitting a shared bill between personal and business use.
Source: GOV.UK: VAT Flat Rate Scheme; GOV.UK: VAT thresholds. Last updated .
Frequently asked questions
- How much is £10 plus VAT?
- £10 plus 20% VAT is £12.00. The VAT element is £2.00. At the 5% reduced rate the total is £10.50, and at 0% it stays at £10.
- How much VAT is included in £10?
- If £10 already includes 20% VAT, the VAT inside it is £1.67 and the net amount is £8.33. You divide by 1.2 to find the net, then subtract to find the VAT.
- What is £10 minus VAT?
- £10 minus 20% VAT is £8.33. That assumes the £10 was a VAT inclusive price. If £10 was already the net price, there is no VAT to take off.
Cite this page: “VAT on £10”, SoleKit, https://solekit.co.uk/vat-calculator/10