The VAT on £20 at the standard 20% rate is £4.00, making a gross total of £24.00.
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If £20 is the net price (excluding VAT), adding 20% VAT gives:
| Item | Amount |
|---|---|
| Net | £20.00 |
| VAT (20%) | £4.00 |
| Gross | £24.00 |
If £20 is the gross price (including 20% VAT), removing the VAT gives a net of £16.67 and VAT of £3.33 (the VAT is one sixth of the gross).
At the reduced 5% rate, adding VAT to £20 net gives £1.00 VAT and a gross of £21.00.
Adding 20% VAT to £20 gives £4.00 of VAT and a gross total of £24.00.
£20 plus 20% VAT is £24.00.