The VAT on £50 at the standard 20% rate is £10.00, making a gross total of £60.00.
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If £50 is the net price (excluding VAT), adding 20% VAT gives:
| Item | Amount |
|---|---|
| Net | £50.00 |
| VAT (20%) | £10.00 |
| Gross | £60.00 |
If £50 is the gross price (including 20% VAT), removing the VAT gives a net of £41.67 and VAT of £8.33 (the VAT is one sixth of the gross).
At the reduced 5% rate, adding VAT to £50 net gives £2.50 VAT and a gross of £52.50.
Adding 20% VAT to £50 gives £10.00 of VAT and a gross total of £60.00.
£50 plus 20% VAT is £60.00.