VAT, both ways.
Add VAT to a net figure, or pull the net and the VAT back out of a total that already includes it.
- Net
- £1,000.00
- VAT at 20%
- £200.00
- Gross
- £1,200.00
Taking 20% off the gross figure would give £240.00, which is wrong. The VAT inside £1,200.00 is £200.00, because you divide by 1.2 rather than subtracting the rate.
A sixth, not a fifth.
Removing VAT is not the same as subtracting the rate, and this is the single most common arithmetic error in UK invoicing. On £1,200 including VAT at 20%, the VAT is £200 and the net is £1,000. Taking 20% off £1,200 gives £240, which is £40 wrong on one invoice. You divide by 1.2 rather than multiplying by 0.8.
Whether you register is a different question.
The registration threshold tests taxable turnover, so exempt income never counts toward it. A GP locum billing well over £90,000 of clinical work is usually not required to register at all, because clinical services are exempt rather than zero rated. Ask FIGURX in ChatGPT and it will work it out on both the backward and forward look.
Copy the address, then add it in ChatGPT under Settings, Connectors.