You need to know what the current standard UK VAT rate is in order to calculate the total figure when you add VAT to £500.
As a result, £500 plus VAT (20%) equals £600.
How was the calculation done?
The following calculation is used to achieve the figure above.
- Use a figure of £500 as a starting point
- The result of dividing £500 by 100 is £5
- A figure of £500 is then calculated by multiplying the £5 by 100 and adding 20% VAT.