SoleKitAll tools

VAT on £85

Add or remove VAT at 20%, 5%, 0% on £85, with the net, VAT and gross figures.

Adding 20% VAT to £85 gives £102.00, of which £17.00 is VAT. Removing 20% VAT from £85 gives £70.83 net, with £14.17 of VAT inside the price. At the 5% reduced rate the VAT is £4.25 when added and £4.05 when removed; at 0% nothing changes.

£85 at every VAT rate

Adding VAT to £85 net, and removing VAT from £85 gross
CalculationNetVATGross
Add 20%£85.00£17.00£102.00
Remove 20%£70.83£14.17£85.00
Add 5%£85.00£4.25£89.25
Remove 5%£80.95£4.05£85.00
Add 0%£85.00£0.00£85.00
Remove 0%£85.00£0.00£85.00

Open £85 in the VAT calculator

What £85 looks like with and without VAT

A £85 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 £14.17 of that £85 is tax you can reclaim on your return, leaving a net cost of £70.83. Without a valid VAT receipt you can still claim the £85 as an expense against profit, but not the VAT itself.

Working the other way, if you quote £85 before VAT and you are VAT registered, the customer pays £102.00: your £85 plus £17.00 that you collect for HMRC. At the 5% reduced rate, which applies to things like domestic energy and children's car seats, the same £85 becomes £89.25. Zero-rated items such as most food, books and children's clothing stay at £85 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 £85 including VAT contains £14.17, not £17.00. 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 £85 plus VAT?
£85 plus 20% VAT is £102.00. The VAT element is £17.00. At the 5% reduced rate the total is £89.25, and at 0% it stays at £85.
How much VAT is included in £85?
If £85 already includes 20% VAT, the VAT inside it is £14.17 and the net amount is £70.83. You divide by 1.2 to find the net, then subtract to find the VAT.
What is £85 minus VAT?
£85 minus 20% VAT is £70.83. That assumes the £85 was a VAT inclusive price. If £85 was already the net price, there is no VAT to take off.

Cite this page: “VAT on £85”, SoleKit, https://solekit.co.uk/vat-calculator/85