Thanks for taking the time posting your concern here in the Community. I'm here to help share some information on submitting invoice payment with VAT.
This transaction depends on how the items are charged. If the amount is exclusive of tax, it means the invoice that you're paying doesn't include VAT, so you have to pay the amount of £1,200.
However, if the amount is inclusive of tax, you should only pay £1,000 since the VAT is already included on your invoice total amount.