% calculation

[breezer]

i cant remember the forumla

say an item cost £100, we all know vat will be £17.50
so total will be £117.50

but suppose you didnt know the vat was 17.50, but you knew the total was 117.5

its the formula i cant remeber, i seem to recall it was 1.something (but i may be wrong, probably am)

so does anyone know what it is.

i did find a site that does it for you, but thats not what i want

 

[anobium]

Quick way, the total amount minus 14.89% will give you the vatable cost.

 

[JohnD]

if you know the gross price is £117.50, and you know VAT is 17.5%

Divide the gross price (£117.50) by 1.175 and get £100 (the net price)

Divide the gross price by 1.175 and multiply by 0.175 and get the VAT amount

Multiply the net price (£100) by 1.175 to get the price inc VAT

Multiply the net price by 0.175 to get the VAT amount

Is that what you meant?

if you often need to calculate VAT, you can (probably still) get a calculator with programmable functions in it.

 

[breezer]

tthanks, but its for Mrs Breezer, and its the vat amount she needs to know.
I also appreciate you could then take one from the other and what left is vat, but i am sure in my days gone by there was a calculation with a 1 at the begining, as this gives you the vat amount

 

[JohnD]

Quick way, the total amount minus 14.89% will give you the vatable cost.

this is the same as multiplying the gross by 0.8511? it's very close, but not exact for large amounts.

 

[breezer]

JohnD, thats the one its got a 1 in it, you and i posted at the same time so i did not see your reply.

thanks very much

 

[heatingman]

Does this help,it what my missus uses when I dont complete invoices correctly.
eg: invoice total = £311.37inc vat
311.37 x 7 /47 =46.37, the 747 (jumbo jet) only works for 17.5%
265 + 17.5% (46.37) = 311.37.

John

 

[vsynth]

The total is 117.5% of the cost price.

To find how much is vat divide the total by 117.5 (to get 1%) and multiply by 17.5.

Likewise to find the cost price divide the total by 117.5 and multiply by 100.

 

[namsag]

As JohnD has already said, simplest way with one calc is divide the amount by 1.175

 

[luminaire]

say an item cost £100, we all know vat will be £17.50
so total will be £117.50

but suppose you didnt know the vat was 17.50, but you knew the total was 117.5

Breezer, are you saying you know how much an item costs and how much it costs when tax is added; but you don't know how to work out the tax rate applied?
Lets say an item cost £372 and when tax was added it amounted to £455.70
What is the rate of tax?
To work it out:

£455 - £372 = £83.70
83.70/372 = 0.225
0.225 x 100 = 22.5%

HTH

 

[breezer]

Breezer, are you saying you know how much an item costs and how much it costs when tax is added; but you don't know how to work out the tax rate applied?

tthanks, but its for Mrs Breezer, and its the vat amount she needs to know.

JohnD, thats the one its got a 1 in it, you and i posted at the same time so i did not see your reply.

thanks very much

 

[luminaire]

Ok then breezer, seeing as you're on a roll.
If you wanted to sell gizmos at £372 but wanted to offer 17½% discount off the asking price, what would you have to sell them for?

 

[noseall]

£316.60p

 

[JohnD]

that looks like a trick question (or a mistake)

VAT is 17.5% of the ex-VAT price

It is not 17.5% of the inc-VAT price.

( 17.5% of £372 is £65.10
£372 minus £65.10 is £306.90

but if £306.90 had been the ex-VAT price, 17.5% of £306.90 is £53.7075

If £372 had ben the inc-VAT price, then the ex-VAT price would have been £316.60 approx, and VAT would have been £55.40 approx )

 

[luminaire]

£316.60p

If you sell at that price you won't be making any profit - you 'll be selling them at a loss