VAT on £125
Add or remove VAT at 20%, 5%, 0% on £125, with the net, VAT and gross figures.
Adding 20% VAT to £125 gives £150.00, of which £25.00 is VAT. Removing 20% VAT from £125 gives £104.17 net, with £20.83 of VAT inside the price. At the 5% reduced rate the VAT is £6.25 when added and £5.95 when removed; at 0% nothing changes.
£125 at every VAT rate
| Calculation | Net | VAT | Gross |
|---|---|---|---|
| Add 20% | £125.00 | £25.00 | £150.00 |
| Remove 20% | £104.17 | £20.83 | £125.00 |
| Add 5% | £125.00 | £6.25 | £131.25 |
| Remove 5% | £119.05 | £5.95 | £125.00 |
| Add 0% | £125.00 | £0.00 | £125.00 |
| Remove 0% | £125.00 | £0.00 | £125.00 |
What £125 looks like with and without VAT
£125 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 £125 plus VAT, the total to pay is £150.00 and the £25.00 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 £125 is the amount that already includes VAT, the net is £104.17 and the VAT element is £20.83. 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 £125 would be only £5.95, 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 £125 net means invoicing £150.00 at the standard rate. Many freelancers price in round net figures and let the VAT sit on top, so the customer sees £125 as the fee and £25.00 as tax they can usually reclaim if they are registered themselves. If your customers are consumers who cannot reclaim, the £150.00 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 £125 plus VAT?
- £125 plus 20% VAT is £150.00. The VAT element is £25.00. At the 5% reduced rate the total is £131.25, and at 0% it stays at £125.
- How much VAT is included in £125?
- If £125 already includes 20% VAT, the VAT inside it is £20.83 and the net amount is £104.17. You divide by 1.2 to find the net, then subtract to find the VAT.
- What is £125 minus VAT?
- £125 minus 20% VAT is £104.17. That assumes the £125 was a VAT inclusive price. If £125 was already the net price, there is no VAT to take off.
Cite this page: “VAT on £125”, SoleKit, https://solekit.co.uk/vat-calculator/125