That VAT cut

[Nick]

Um. £100.Divide by 100 = 1

Multiply by 15 = 15

Thus vat at 15% on 100 is 15, making 115

[Snoopy]

See the link I provided earlier

http://www.hmrc.gov.uk/vat/reclaim-howto-calc.htm

[Pastis]

Absolutely no idea. Why would you use two numbers that bear no relation to the actual rate?

In my book keeping practice (arcane as it may be) I want to know the VAT figure first on a bill I've paid where it isn't itemised, not the Nett figure.

[Snoopy]

Um. £100.Divide by 100 = 1

Multiply by 15 = 15

Thus vat at 15% on 100 is 15, making 115

Yes Nick we all understand that basic calculation from a cost price but if you buy an item costing £376.49 inclusive of VAT how would you calculate how much VAT you had paid in order that you might claim it back if for example you were VAT registered and wanted to off set your VAT paid against that you owed or as another example if you were leaving the country and thus qualified to buy the item VAT free?

[Uncle Mort]

Absolutely no idea. Why would you use two numbers that bear no relation to the actual rate?

In my book keeping practice (arcane as it may be) I want to know the VAT figure first on a bill I've paid where it isn't itemised, not the Nett figure.

'nuff said.

[Pastis]

The new numbers are .............  

6 and 46  

It's just quicker on the calculator to multiply the amount by 6 and divide by 46, enter the new VAT amount and then enter the Nett figure.

£49.11 is the new VAT figure btw, on your example, like

[Pastis]

It seems that Darling has caught the Inland Rev & Customs out as their web site stilll gives the old method  http://www.hmrc.gov.uk/vat/reclaim-howto-calc.htm

It doesn't surprise me. 

I've had a communication from HMCR this week in which the tax due statement bears no relation to the computation from my accountants. My accountant's reaction was:

"   Let's wait until late December / January and see what they say then" 

HMCR are incompetent in so many ways...

[Just One More]

Before I scrolled all the way down the thread I asked Mrs JOM (does accounts) what the new figures were, she said 3 and 23 (half your figures Pastis). I ain't gonna bother telling her you said 6 and 46, I'll never hear the last of it

[Pastis]

She's quite right JOM. I worked it out by trial and error knowing that it had to be less than 7 & 47 which won't divide down any less.
And.... 3 & 23 works just as nice because the figures on the keypad are side by side 

[Snoopy]

Now all we have to do is explain it to Nick   

[Nick]

I have no idea what you are all talking about

How do you do the sums for the (alleged) increase to 18.5%?

[Barman]

I always used to use 3 and 23... 

[Nick]

Useful numbers, those

[Bar Wench]

My brain hurts.

[Pastis]

I find it one of the worst chores of running a business ~ being an unpaid tax collector 

There's another one that nearly caught me out; occasionally I sell material, books etc in a venue. The venue demands a 20% cut of the sale. How much do I increase the price of the material by to ensure I'm covered exactly? Not the obvious answer