VAT on £120
Add or remove VAT at 20%, 5%, 0% on £120, with the net, VAT and gross figures.
Adding 20% VAT to £120 gives £144.00, of which £24.00 is VAT. Removing 20% VAT from £120 gives £100.00 net, with £20.00 of VAT inside the price. At the 5% reduced rate the VAT is £6.00 when added and £5.71 when removed; at 0% nothing changes.
£120 at every VAT rate
| Calculation | Net | VAT | Gross |
|---|---|---|---|
| Add 20% | £120.00 | £24.00 | £144.00 |
| Remove 20% | £100.00 | £20.00 | £120.00 |
| Add 5% | £120.00 | £6.00 | £126.00 |
| Remove 5% | £114.29 | £5.71 | £120.00 |
| Add 0% | £120.00 | £0.00 | £120.00 |
| Remove 0% | £120.00 | £0.00 | £120.00 |
What £120 looks like with and without VAT
£120 sits in the range of a typical supplier invoice, a software subscription paid annually, or a day of someone else's time. If you receive an invoice for £120 plus VAT, the total to pay is £144.00 and the £24.00 of VAT goes in box 4 of your return as input tax, provided the supplier is VAT registered and the invoice shows their number.
If instead £120 is the amount that already includes VAT, the net is £100.00 and the VAT element is £20.00. That split matters for your bookkeeping: the net goes to the expense category and the VAT to your VAT control account. At 5% the VAT inside £120 would be only £5.71, which is why energy bills for a home office show a much smaller tax line than a trade supplier does.
For your own sales, charging £120 net means invoicing £144.00 at the standard rate. Many freelancers price in round net figures and let the VAT sit on top, so the customer sees £120 as the fee and £24.00 as tax they can usually reclaim if they are registered themselves. If your customers are consumers who cannot reclaim, the £144.00 is what they compare against competitors, so it pays to decide which number you are quoting.
Source: GOV.UK: VAT Flat Rate Scheme; GOV.UK: VAT thresholds. Last updated .
Frequently asked questions
- How much is £120 plus VAT?
- £120 plus 20% VAT is £144.00. The VAT element is £24.00. At the 5% reduced rate the total is £126.00, and at 0% it stays at £120.
- How much VAT is included in £120?
- If £120 already includes 20% VAT, the VAT inside it is £20.00 and the net amount is £100.00. You divide by 1.2 to find the net, then subtract to find the VAT.
- What is £120 minus VAT?
- £120 minus 20% VAT is £100.00. That assumes the £120 was a VAT inclusive price. If £120 was already the net price, there is no VAT to take off.
Cite this page: “VAT on £120”, SoleKit, https://solekit.co.uk/vat-calculator/120