VAT on £720
Add or remove VAT at 20%, 5%, 0% on £720, with the net, VAT and gross figures.
Adding 20% VAT to £720 gives £864.00, of which £144.00 is VAT. Removing 20% VAT from £720 gives £600.00 net, with £120.00 of VAT inside the price. At the 5% reduced rate the VAT is £36.00 when added and £34.29 when removed; at 0% nothing changes.
£720 at every VAT rate
| Calculation | Net | VAT | Gross |
|---|---|---|---|
| Add 20% | £720.00 | £144.00 | £864.00 |
| Remove 20% | £600.00 | £120.00 | £720.00 |
| Add 5% | £720.00 | £36.00 | £756.00 |
| Remove 5% | £685.71 | £34.29 | £720.00 |
| Add 0% | £720.00 | £0.00 | £720.00 |
| Remove 0% | £720.00 | £0.00 | £720.00 |
What £720 looks like with and without VAT
£720 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 £720 plus VAT, the total to pay is £864.00 and the £144.00 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 £720 is the amount that already includes VAT, the net is £600.00 and the VAT element is £120.00. 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 £720 would be only £34.29, 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 £720 net means invoicing £864.00 at the standard rate. Many freelancers price in round net figures and let the VAT sit on top, so the customer sees £720 as the fee and £144.00 as tax they can usually reclaim if they are registered themselves. If your customers are consumers who cannot reclaim, the £864.00 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 £720 plus VAT?
- £720 plus 20% VAT is £864.00. The VAT element is £144.00. At the 5% reduced rate the total is £756.00, and at 0% it stays at £720.
- How much VAT is included in £720?
- If £720 already includes 20% VAT, the VAT inside it is £120.00 and the net amount is £600.00. You divide by 1.2 to find the net, then subtract to find the VAT.
- What is £720 minus VAT?
- £720 minus 20% VAT is £600.00. That assumes the £720 was a VAT inclusive price. If £720 was already the net price, there is no VAT to take off.
Cite this page: “VAT on £720”, SoleKit, https://solekit.co.uk/vat-calculator/720