VATCalculator UK

Remove VAT from £25

£25 gross contains £4.17 of VAT, leaving £20.83 net. Use the calculator below to extract VAT from any gross amount.

Enter values above to calculate.

To remove UK VAT, divide the gross (VAT-inclusive) amount by 1 + (rate ÷ 100). At the standard 20% rate that is ÷ 1.20, so £25 ÷ 1.20 = £20.83 net, and the VAT is £25 − £20.83 = £4.17.

A common mistake is to subtract 20% from the gross — that under-removes the VAT, because the 20% was charged on the smaller net figure, not the gross.

How it works.

Formula: net = gross ÷ (1 + rate ÷ 100); VAT = gross − net.

  1. Divide by 1.20: £25 ÷ 1.20 = £20.83 net.
  2. VAT element: £25 − £20.83 = £4.17.
  3. Check: £20.83 × 1.20 = £25.
Worked examples
£25 gross − 20% VAT = £20.83 net — the VAT element of the £25 total is £4.17.
Reading a receipt — a £25 VAT-inclusive total breaks down as £20.83 net plus £4.17 VAT.
Why divide, not subtract 20% — the VAT is 20% of the net, not of the gross. Divide the gross by 1.20: £25 ÷ 1.20 = £20.83.
Related: Add VAT to £25 Remove VAT from £20 Remove VAT from £30 VAT amount tables
Sources: HMRC VAT rates · retrieved 2026-06-18.

Frequently asked questions

How much VAT is in £25?
£4.17. With 20% VAT included, divide the gross by 1.20 to get the net (£25 ÷ 1.20 = £20.83), then the VAT is the difference: £25 − £20.83 = £4.17.
What is £25 minus VAT?
£20.83 net. Removing 20% VAT means dividing by 1.20, not subtracting 20% — subtracting 20% would give the wrong answer because the VAT is a fraction of the net.
What is the VAT fraction for 20%?
One-sixth. At 20%, the VAT in any gross amount is gross × 1/6. For £25 that is £25 × 1/6 = £4.17, matching the divide-by-1.20 method.