4m x 3m Omlet pen, cube, new auto door still boxed and coop light

[Cinnamon]

We run our own business & I do the accounts, however maths has never been my strong point, so I find the whole process somewhat painful

 

At the moment to calculate the amount of VAT at 17.5% that we have been charged for on goods we have bought I multiply the total by 7, then divinde it by 47.

 

Does anyone know what the equivilant calculation will be for the new rte of 15%?

 

Please?

[Lydia]

I hate calculating VAT or any percentage too.

 

I find the easiest way to do it is to multiply the net total by 0.15 to give you the amount of VAT. For example, something costing £50 x 0.15 means the VAT would be £7.50.

 

Alternatively, to get the gross figure, multiply the net figure by 1.15. (50 x 1.15 = 57.50)

 

I do of course use a calculator at all times and never ever try this in my head

 

Hope this helps. Good luck!

[Dodge]

No idea

 

But here is a handy calculator that you may find useful.

 

http://www.taxcentral.co.uk/taxcentral/home/vat/vatcalculator/default.asp

 

Regards

 

Dodge

[milli]

I think it's multiply by 6 divide by 46.

 

Reason being that you need to work out 15 as a proportion of 115 which is 0.130434 (i think), whereas 17.5 as a proportion of 117.5 is 0.148936 which when multiplied by 47 gives you 7. I hope this is right, it's a long while since I did my tax exams!

[TAJ]

The key thing is that the 100% = the price before VAT, so the price incl. VAT will now be 115% instead of 117.5%. I get very angry when news presenters are telling people it is a saving of 2.5% of the selling price - one news presenter this morning quoted on something costing £100 you save £2.50 - which is not so.

 

If something sells for £100 incl VAT @ 17.5% it is £85.11 without VAT, therefore at 15% VAT it should now drop to £97.88 - a saving of £2.12, not £2.50.

 

Tracy

[Leicester_H]

Hi

If you have a calculator (?) surely the simplest is to multiply the preVAT price by 1.15 to get the price including VAT at 15%

 

eg. £100 x 1.15 = £115 (difference is £15 which is 15% of £100)

 

(previously when VAT was 17.5% simple multiply the preVAT price by 1.175)

eg. £100 x 1.175 = £117.50 (difference is £17.50 which is 17.5% of £100)

 

ONE calculation - less likely to make a mistake.

 

or am I missing something ??

 

H

[milli]

I think the issue is that Cinnamon is trying to work out the VAT included in her purchases for her accounts i.e. does not know the pre Vat price. So you have to work it out backwards to that.

 

So you can divide by 115 and multiply by 100 but then you have to take that away from the original to get the VAT amount - hence why people find it easier to do the multiply by 7 divide by 47 thing for 17.5%

[TAJ]

Hazel - your calculation is correct, but I think the issue raised was how you get from the 'old' price including VAT to the new price including VAT.

 

So using your example of something costing £117.50 it is not a simple case of taking 2.5% off that price. You would have to divide by 1.175 and then times by 1.15 to get the new price.

 

Tracy

[Faye&Ant]

I am working it out 15/115 to get the VAT and 100/115 to get the net. Hope thats right as I work in VAT. Only a year to go til it changes back again

[Leicester_H]

Hazel - your calculation is correct, but I think the issue raised was how you get from the 'old' price including VAT to the new price including VAT.

So using your example of something costing £117.50 it is not a simple case of taking 2.5% off that price. You would have to divide by 1.175 and then times by 1.15 to get the new price.

 

OK - misunderstood - I agree

 

Assuming you have a calculator, in order to keep calulations to a minimum (thereby minimising possibilities of entering incorrect numbers) you need to

 

multiply old price (inc 17.5%VAT)

 

by (1.15/1.175) = 0.9787234.....

 

to get new price (inc 15% vat)

 

[NB. order of multiplication and division does not matter]

 

So as above £100 (inc 17.5% VAT) = 100x0.97872 = £97.87(2) (inc 15% VAT)

 

In order to preserve accuracy, you should use one more figure in calculation (ie decimal place) than required in answer, and then round up or down (0-4 round down to nearest pence, 5-9 round up)

 

So for £1000.00, use 0.978723 etc.

[Cinnamon]

Blimey

 

So its x6,divide by 46 then, did someone say that?

 

Sorry but if you heard a big WHOOOOOSH that was the rest of your posts going right over my head.

 

Thanks for your help though

[Leicester_H]

So its x6,divide by 46 then, did someone say that?

 

That doesn't feel right ??

 

eg £100 x 6 = £600

 

£600 divided by 46 = £13.04 - what is this number supposed to be ?

New price ? Can't be

Amount to deduct ?? £100 - 13.04 = £86.95 (incorrect)

[milli]

So its x6,divide by 46 then, did someone say that?

 

That doesn't feel right ??

 

eg £100 x 6 = £600

 

£600 divided by 46 = £13.04 - what is this number supposed to be ?

New price ? Can't be

Amount to deduct ?? £100 - 13.04 = £86.95 (incorrect)

 

I think you may have misunderstood the original question, the way I read it was that Cinnamon wants to know the VAT amount of goods that will be bought in for her business after the VAT rate change. Therefore she needs to get the 15% VAT extracted from the VAT inclusive price that she has paid. So using your example, the purchase (after the rate change) was £100, the VAT included in that is £13.04 and the pre VAT price was therefore £86.96.

 

Apologies if I've misunderstood the original post

 

 

edited to add - I bet you didn't expect such lengthy responses and debate when you posted the original question Cinnamon!

[Old Speckled Hen]

If you multiply your VAT inclusive price by .13043475 you will get VAT at 15%

Alternatively most calculators have a variable VAT input button which will give you both VAT included and added.

Hope that helps

[Cinnamon]

I bet you didn't expect such lengthy responses and debate when you posted the original question Cinnamon!

 

No, I didn't, but I am ever so grateful for the response.

 

I just need to know the VAT amount on a purchase really,I don't need the pre VAT price. I can use the minus button for that figure

 

I HATE accounts......

[Lydia]

OK just asked the chartered accountant husband on this because it'll help me too.

 

You need to divide your gross figure by 1.15 and that will give you your net figure. Then you simply substact your net from your gross to give you the VAT.

 

For example: £100 divided by 1.15 is £86.96, so the VAT is £13.04.

 

Does that make sense?

 

Don't ya just love VAT??? Perhaps someone should work out how many days of your life you lose working out VAT

[milli]

i feel we are going round in circles here

 

you can either do multiply by 6 divide by 46

 

OR

 

you can divide by 1.15 and then minus that figure from the original

 

OR you can multiply by 0.13043478

 

all should give you the same answer (the same calculations expressed in different formats)

 

Now I vow not to comment again as I gave up finance for a reason!

Edited November 25, 2008 by Guest

[Cinnamon]

Thank you all, so much

Hopefully it will sort itself out,just in time for the rate to go back up again

[Cinnamon]

Just had an email from my accountant saying x3 /23

[Goosey Lucy]

x6 then divide by 46 has the same result as x3 then divide by 23.

 

I love this thread

 

(I must get out more)