VATCalculator UK

Remove VAT from £5,000

£5,000 gross contains £833.33 of VAT, leaving £4,166.67 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 £5,000 ÷ 1.20 = £4,166.67 net, and the VAT is £5,000 − £4,166.67 = £833.33.

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: £5,000 ÷ 1.20 = £4,166.67 net.
  2. VAT element: £5,000 − £4,166.67 = £833.33.
  3. Check: £4,166.67 × 1.20 = £5,000.
Worked examples
£5,000 gross − 20% VAT = £4,166.67 net — the VAT element of the £5,000 total is £833.33.
Expense claim — from a £5,000 gross invoice, a registered business reclaims £833.33 and books £4,166.67 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: £5,000 ÷ 1.20 = £4,166.67.
Related: Add VAT to £5,000 Remove VAT from £4,500 Remove VAT from £6,000 VAT amount tables
Sources: HMRC VAT rates · retrieved 2026-06-18.

Frequently asked questions

How much VAT is in £5,000?
£833.33. With 20% VAT included, divide the gross by 1.20 to get the net (£5,000 ÷ 1.20 = £4,166.67), then the VAT is the difference: £5,000 − £4,166.67 = £833.33.
What is £5,000 minus VAT?
£4,166.67 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 £5,000 that is £5,000 × 1/6 = £833.33, matching the divide-by-1.20 method.