K

#### Keith.F

How can I work backwards from a net price of an article to find out what the amount of VAT on it was?

i.e.. if I paid £10 for an item what calculation would I need to do to establish how much of that was VAT.

Thanks,

Keith

K

How can I work backwards from a net price of an article to find out what the amount of VAT on it was?

i.e.. if I paid £10 for an item what calculation would I need to do to establish how much of that was VAT.

Thanks,

Keith

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D

establish how much of that was VAT.Keith.F said:My maths is not up to this...

How can I work backwards from a net price of an article to find out what the amount of VAT on it was?

i.e.. if I paid £10 for an item what calculation would I need to do to

For gross - multiply by 7/47. Therefore, £11.75 (gross) has a vat content ofThanks,

Keith

£1.75.

For net, multiply by 1.175, then again by 7/47. Therefore £10 (net) = £11.75

(gross), and vat of £1.75.

RR may well have quicker method?

K

Which leads me onto a follow up.

In the event of tax changes, is there a simple way of calculating the 'multiplier' for any particular tax rate.

'<<For gross - multiply by 7/47'>>

so I can put it into a spreadsheet and just change the 'tax rate' cell referring other formulas to it..

How do we get the 7/47 from the tax rate?

T

Why not simply multiply by 7/40??For net, multiply by 1.175, then again by 7/47.

"Therefore £10 (net) has vat of: £10 x 7/40, ie £1.75.

T

When rate is 17.5%, you can get 7/47 from :- (17.5 / 117.5) ...How do we get the 7/47 from the tax rate?

For 15% (say), you would use 15 / 115 = (3 / 23).

J

http://www.woolford.co.uk/common/calculators/vat.html

John.

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K

Brilliant, thanks.Tim and Doug

J

Divide the amount you pay by 1 plus the VAT rate divided by 100.Keith.F said:Thanks Doug.

Which leads me onto a follow up.

In the event of tax changes, is there a simple way of calculating the

'multiplier' for any particular tax rate.

'<<For gross - multiply by 7/47'>>

so I can put it into a spreadsheet and just change the 'tax rate' cell

referring other formulas to it..

So 10.00/(1+(17.5/100)) gives you the 'non vat' amount which you can the

subtract from the amount you paid.

This way is useless.How do we get the 7/47 from the tax rate?

J

Why not divide by 1.175?Doug Ramage said:For gross - multiply by 7/47. Therefore, £11.75 (gross) has a vat content of

£1.75.

JB has. Multiply by .175For net, multiply by 1.175, then again by 7/47. Therefore £10 (net) = £11.75

(gross), and vat of £1.75.

RR may well have quicker method?

In both cases express the VAT rate as a decimal equivalent, NOT as a

percentage.

N

I'm a bit confused by people working in fractions. I was brought up onjohn boyle said:Divide the amount you pay by 1 plus the VAT rate divided by 100.

So 10.00/(1+(17.5/100)) gives you the 'non vat' amount which you can the

subtract from the amount you paid.

This way is useless.

decimals. I like to keep things simple. If you pay £10.00 total divide by

1.175, so the non vat amount is £8.51. If you have the net amount mutiply by

1.175 to get the total you pay, so £10 becomes £11.75 with vat added.

Neb

N

I posted my reply to your last post before this one appeared on my server-john boyle said:Why not divide by 1.175?

JB has. Multiply by .175

In both cases express the VAT rate as a decimal equivalent, NOT as a

percentage.

honest Guv!

Neb

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J

You seem a decent enough cove, so I'll believe you ! just this once!In message said:I posted my reply to your last post before this one appeared on my server-

honest Guv!

R

There's a very compelling reason: You'd get the wrong answer. :-(john said:Why not divide by 1.175?

R

To get 7/47 from this, double 17.5 / 117.5 to get to integers:When rate is 17.5%, you can get 7/47 from :- (17.5 / 117.5) ...

Giving 35 / 235

Reduce by dividing each value by 5:

7/47.

One nice thing about this is that you can do it in your head quite

easily. Well, easier than multiplying by 0.14893617!

hth

Robin

R

Come off it. The nice thing about it is that you only needrobin said:7/47.

One nice thing about this is that you can do it in your head quite

easily. Well, easier than multiplying by 0.14893617!

six keypresses on a calculator. If you can multiply £987.65

by 7 and then divide it by 47 in your head, as opposed to with

the aid of pencil and paper, then I covet your head.

Your time starts NOW.

WELL?

Not worked it out yet?

TOLD YOU SO!

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T

Why not simply divide each value by 2.5 at the start, rather than doublingTo get 7/47 from this, double 17.5 / 117.5 to get to integers:

Giving 35 / 235

Reduce by dividing each value by 5:

7/47.

originally? You only need one stage rather than two then!

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