VAT on £75
Add or remove VAT at 20%, 5%, 0% on £75, with the net, VAT and gross figures.
Adding 20% VAT to £75 gives £90.00, of which £15.00 is VAT. Removing 20% VAT from £75 gives £62.50 net, with £12.50 of VAT inside the price. At the 5% reduced rate the VAT is £3.75 when added and £3.57 when removed; at 0% nothing changes.
£75 at every VAT rate
| Calculation | Net | VAT | Gross |
|---|---|---|---|
| Add 20% | £75.00 | £15.00 | £90.00 |
| Remove 20% | £62.50 | £12.50 | £75.00 |
| Add 5% | £75.00 | £3.75 | £78.75 |
| Remove 5% | £71.43 | £3.57 | £75.00 |
| Add 0% | £75.00 | £0.00 | £75.00 |
| Remove 0% | £75.00 | £0.00 | £75.00 |
What £75 looks like with and without VAT
A £75 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 £12.50 of that £75 is tax you can reclaim on your return, leaving a net cost of £62.50. Without a valid VAT receipt you can still claim the £75 as an expense against profit, but not the VAT itself.
Working the other way, if you quote £75 before VAT and you are VAT registered, the customer pays £90.00: your £75 plus £15.00 that you collect for HMRC. At the 5% reduced rate, which applies to things like domestic energy and children's car seats, the same £75 becomes £78.75. Zero-rated items such as most food, books and children's clothing stay at £75 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 £75 including VAT contains £12.50, not £15.00. 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 £75 plus VAT?
- £75 plus 20% VAT is £90.00. The VAT element is £15.00. At the 5% reduced rate the total is £78.75, and at 0% it stays at £75.
- How much VAT is included in £75?
- If £75 already includes 20% VAT, the VAT inside it is £12.50 and the net amount is £62.50. You divide by 1.2 to find the net, then subtract to find the VAT.
- What is £75 minus VAT?
- £75 minus 20% VAT is £62.50. That assumes the £75 was a VAT inclusive price. If £75 was already the net price, there is no VAT to take off.
Cite this page: “VAT on £75”, SoleKit, https://solekit.co.uk/vat-calculator/75