VAT on £240
Add or remove VAT at 20%, 5%, 0% on £240, with the net, VAT and gross figures.
Adding 20% VAT to £240 gives £288.00, of which £48.00 is VAT. Removing 20% VAT from £240 gives £200.00 net, with £40.00 of VAT inside the price. At the 5% reduced rate the VAT is £12.00 when added and £11.43 when removed; at 0% nothing changes.
£240 at every VAT rate
| Calculation | Net | VAT | Gross |
|---|---|---|---|
| Add 20% | £240.00 | £48.00 | £288.00 |
| Remove 20% | £200.00 | £40.00 | £240.00 |
| Add 5% | £240.00 | £12.00 | £252.00 |
| Remove 5% | £228.57 | £11.43 | £240.00 |
| Add 0% | £240.00 | £0.00 | £240.00 |
| Remove 0% | £240.00 | £0.00 | £240.00 |
What £240 looks like with and without VAT
£240 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 £240 plus VAT, the total to pay is £288.00 and the £48.00 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 £240 is the amount that already includes VAT, the net is £200.00 and the VAT element is £40.00. 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 £240 would be only £11.43, 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 £240 net means invoicing £288.00 at the standard rate. Many freelancers price in round net figures and let the VAT sit on top, so the customer sees £240 as the fee and £48.00 as tax they can usually reclaim if they are registered themselves. If your customers are consumers who cannot reclaim, the £288.00 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 £240 plus VAT?
- £240 plus 20% VAT is £288.00. The VAT element is £48.00. At the 5% reduced rate the total is £252.00, and at 0% it stays at £240.
- How much VAT is included in £240?
- If £240 already includes 20% VAT, the VAT inside it is £40.00 and the net amount is £200.00. You divide by 1.2 to find the net, then subtract to find the VAT.
- What is £240 minus VAT?
- £240 minus 20% VAT is £200.00. That assumes the £240 was a VAT inclusive price. If £240 was already the net price, there is no VAT to take off.
Cite this page: “VAT on £240”, SoleKit, https://solekit.co.uk/vat-calculator/240