how to work out how much vat to pay hmrc?
For example, if your business charged a total of £12,000 of VAT on the goods and services it sold (output VAT) and it paid £2,000 in VAT on products and services it bought (input VAT) the VAT calculation would be: £12,000 (output VAT) – £2,000 (input VAT) = £10,000 in VAT to pay HMRC.