The VAT on £5,000 at the standard 20% rate is £1,000.00, making a gross total of £6,000.00.
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If £5,000 is the net price (excluding VAT), adding 20% VAT gives:
| Item | Amount |
|---|---|
| Net | £5,000.00 |
| VAT (20%) | £1,000.00 |
| Gross | £6,000.00 |
If £5,000 is the gross price (including 20% VAT), removing the VAT gives a net of £4,166.67 and VAT of £833.33 (the VAT is one sixth of the gross).
At the reduced 5% rate, adding VAT to £5,000 net gives £250.00 VAT and a gross of £5,250.00.
Adding 20% VAT to £5,000 gives £1,000.00 of VAT and a gross total of £6,000.00.
£5,000 plus 20% VAT is £6,000.00.