Remove VAT from £4,500
£4,500 gross contains £750 of VAT, leaving £3,750 net. Use the calculator below to extract VAT from any gross amount.
To remove UK VAT, divide the gross (VAT-inclusive) amount by 1 + (rate ÷ 100). At the standard 20% rate that is ÷ 1.20, so £4,500 ÷ 1.20 = £3,750 net, and the VAT is £4,500 − £3,750 = £750.
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.
- Divide by 1.20: £4,500 ÷ 1.20 = £3,750 net.
- VAT element: £4,500 − £3,750 = £750.
- Check: £3,750 × 1.20 = £4,500.
Worked examples
£4,500 gross − 20% VAT = £3,750 net — the VAT element of the £4,500 total is £750.
Expense claim — from a £4,500 gross invoice, a registered business reclaims £750 and books £3,750 as the net cost.
Why divide, not subtract 20% — the VAT is 20% of the net, not of the gross. Divide the gross by 1.20: £4,500 ÷ 1.20 = £3,750.
Sources:
HMRC VAT rates
· retrieved 2026-06-18.
Frequently asked questions
How much VAT is in £4,500?
£750. With 20% VAT included, divide the gross by 1.20 to get the net (£4,500 ÷ 1.20 = £3,750), then the VAT is the difference: £4,500 − £3,750 = £750.
What is £4,500 minus VAT?
£3,750 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 £4,500 that is £4,500 × 1/6 = £750, matching the divide-by-1.20 method.