🧮 VAT Calculator for £500 (Add VAT)
Add or remove VAT from any amount. Standard, reduced or zero rate.
Quick answer
Adding 20% VAT to £500.00 gives you £600.00 — £100.00 of that is VAT.
- Net: £500.00
- VAT (20%): £100.00
- Gross: £600.00
- VAT on £500.00 reduced rate (5%): £25.00
In detail: VAT Calculator for £500 (Add VAT)
Adding 20% VAT to £500.00 is the everyday calculation for quoting gross prices to UK customers. The net (£500.00) is what you keep; the VAT (£100.00) is collected on behalf of HMRC and paid over in your quarterly return. If you're not VAT-registered, you don't add VAT to your invoices at all — registration is mandatory only above the £90,000 rolling-12-month threshold.
Common misconception: 20% off gross is not the same as the VAT portion of gross. Dividing by 1.2 (or multiplying by 1/6 for the VAT fraction) is the correct method. For £500.00 gross, the true VAT is £83.33 — noticeably different from 20% of £500.00 = £100.00.
For amounts of this size, VAT accuracy really matters — getting it wrong on quotes to B2B customers (who reclaim it) is recoverable, but getting it wrong to consumers typically means absorbing the difference yourself.
What this tool helps with
Amount with/without VAT and VAT amount
What you can enter
- Amount (£): 500
- VAT rate: 20% (Standard)
- Direction: Add VAT
Why this page is useful
Add or remove VAT from any amount. Standard, reduced or zero rate. This page loads fast, gives a direct answer, and then expands with useful context instead of burying the result under filler.