VAT on £25
Add or remove VAT at 20%, 5%, 0% on £25, with the net, VAT and gross figures.
Adding 20% VAT to £25 gives £30.00, of which £5.00 is VAT. Removing 20% VAT from £25 gives £20.83 net, with £4.17 of VAT inside the price. At the 5% reduced rate the VAT is £1.25 when added and £1.19 when removed; at 0% nothing changes.
£25 at every VAT rate
| Calculation | Net | VAT | Gross |
|---|---|---|---|
| Add 20% | £25.00 | £5.00 | £30.00 |
| Remove 20% | £20.83 | £4.17 | £25.00 |
| Add 5% | £25.00 | £1.25 | £26.25 |
| Remove 5% | £23.81 | £1.19 | £25.00 |
| Add 0% | £25.00 | £0.00 | £25.00 |
| Remove 0% | £25.00 | £0.00 | £25.00 |
What £25 looks like with and without VAT
A £25 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 £4.17 of that £25 is tax you can reclaim on your return, leaving a net cost of £20.83. Without a valid VAT receipt you can still claim the £25 as an expense against profit, but not the VAT itself.
Working the other way, if you quote £25 before VAT and you are VAT registered, the customer pays £30.00: your £25 plus £5.00 that you collect for HMRC. At the 5% reduced rate, which applies to things like domestic energy and children's car seats, the same £25 becomes £26.25. Zero-rated items such as most food, books and children's clothing stay at £25 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 £25 including VAT contains £4.17, not £5.00. 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 £25 plus VAT?
- £25 plus 20% VAT is £30.00. The VAT element is £5.00. At the 5% reduced rate the total is £26.25, and at 0% it stays at £25.
- How much VAT is included in £25?
- If £25 already includes 20% VAT, the VAT inside it is £4.17 and the net amount is £20.83. You divide by 1.2 to find the net, then subtract to find the VAT.
- What is £25 minus VAT?
- £25 minus 20% VAT is £20.83. That assumes the £25 was a VAT inclusive price. If £25 was already the net price, there is no VAT to take off.
Cite this page: “VAT on £25”, SoleKit, https://solekit.co.uk/vat-calculator/25