VATCalculator UK

£40,000 plus VAT

£40,000 plus 20% VAT is £48,000. The standard-rate VAT on £40,000 is £8,000. Change the amount or rate in the calculator below.

Enter values above to calculate.

To add UK VAT, multiply the net amount by 1 + (rate ÷ 100). At the standard 20% rate that is × 1.20, so £40,000 × 1.20 = £48,000, of which £8,000 is VAT.

UK VAT rates: 20% standard (most goods and services), 5% reduced (domestic energy, children's car seats), 0% zero-rated (most food, books, children's clothes). Zero-rated still appears on VAT returns; exempt supplies (insurance, finance, education) do not.

How it works.

Formula: net × (1 + rate ÷ 100) = gross.

  1. Convert the rate: 20 ÷ 100 = 0.20.
  2. VAT amount: £40,000 × 0.20 = £8,000.
  3. Gross: £40,000 + £8,000 = £48,000 (or £40,000 × 1.20).
Worked examples
£40,000 + 20% VAT = £48,000 — the standard-rate VAT is £8,000, added on top of the £40,000 net price.
B2B / capital purchase — £40,000 net is £48,000 gross. The £8,000 VAT is cash-flow only for a registered buyer (reclaimed), but a real cost to anyone unregistered.
At the 5% reduced rate (domestic energy, children's car seats): £40,000 + 5% = £42,000, a VAT amount of £2,000.
Related: Remove VAT from £48,000 £30,000 plus VAT £50,000 plus VAT VAT amount tables
Sources: HMRC VAT rates · retrieved 2026-06-18.

Frequently asked questions

How much is 20% VAT on £40,000?
The VAT is £8,000. Multiply the net amount by 0.20: £40,000 × 0.20 = £8,000. Add it to the net price and the gross (VAT-inclusive) total is £48,000.
What is £40,000 plus VAT?
£48,000. To add standard-rate VAT, multiply by 1.20: £40,000 × 1.20 = £48,000. The 1.20 multiplier is the same as adding 20%.
Can I reclaim the VAT on £40,000?
If you are VAT-registered and the purchase is for your business, you can usually reclaim the £8,000 input VAT on your next return — so the real cost is the £40,000 net. Unregistered businesses and consumers cannot reclaim it.