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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

Adding VAT to £25 net, and removing VAT from £25 gross
CalculationNetVATGross
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

Open £25 in the VAT calculator

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