VAT on £60
Add or remove VAT at 20%, 5%, 0% on £60, with the net, VAT and gross figures.
Adding 20% VAT to £60 gives £72.00, of which £12.00 is VAT. Removing 20% VAT from £60 gives £50.00 net, with £10.00 of VAT inside the price. At the 5% reduced rate the VAT is £3.00 when added and £2.86 when removed; at 0% nothing changes.
£60 at every VAT rate
| Calculation | Net | VAT | Gross |
|---|---|---|---|
| Add 20% | £60.00 | £12.00 | £72.00 |
| Remove 20% | £50.00 | £10.00 | £60.00 |
| Add 5% | £60.00 | £3.00 | £63.00 |
| Remove 5% | £57.14 | £2.86 | £60.00 |
| Add 0% | £60.00 | £0.00 | £60.00 |
| Remove 0% | £60.00 | £0.00 | £60.00 |
What £60 looks like with and without VAT
A £60 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 £10.00 of that £60 is tax you can reclaim on your return, leaving a net cost of £50.00. Without a valid VAT receipt you can still claim the £60 as an expense against profit, but not the VAT itself.
Working the other way, if you quote £60 before VAT and you are VAT registered, the customer pays £72.00: your £60 plus £12.00 that you collect for HMRC. At the 5% reduced rate, which applies to things like domestic energy and children's car seats, the same £60 becomes £63.00. Zero-rated items such as most food, books and children's clothing stay at £60 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 £60 including VAT contains £10.00, not £12.00. 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 £60 plus VAT?
- £60 plus 20% VAT is £72.00. The VAT element is £12.00. At the 5% reduced rate the total is £63.00, and at 0% it stays at £60.
- How much VAT is included in £60?
- If £60 already includes 20% VAT, the VAT inside it is £10.00 and the net amount is £50.00. You divide by 1.2 to find the net, then subtract to find the VAT.
- What is £60 minus VAT?
- £60 minus 20% VAT is £50.00. That assumes the £60 was a VAT inclusive price. If £60 was already the net price, there is no VAT to take off.
Cite this page: “VAT on £60”, SoleKit, https://solekit.co.uk/vat-calculator/60