Question

Building work costs £8500 + VAT. VAT is 20% Work out the total cost?

Answer 1

Given, Work cost=£8500

VAT=20%

So VAT= 20% of £8500

20% of 8500 is the VAT

So, Vat= 20/100*8500

= 20/1*85

= 20*85

= 1700

So the VAT to be added on the work cost is £1700

Total cost= Work Cost + VAT

Total cost= £8500+£1700

= £10200