VAT Cut

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Esme
Esme Registered Posts: 711 Epic contributor 🐘
VAT is being slashed to 15% as of 1st December...


... Does anyone know if this will affect our Dec exams?

:ohmy:

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  • sarahwilson
    sarahwilson Registered Posts: 567 Epic contributor 🐘
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    I hope not I don't know how to work out 15% VAT:lol::lol:

    I think it would be too short notice to change it now but they may do.
  • A-Vic
    A-Vic Registered Posts: 6,970 Beyond epic contributor 🧙‍♂️
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    say £100

    100 x 0.15 = 15
  • Esme
    Esme Registered Posts: 711 Epic contributor 🐘
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    It wouldn't be hard to work out, is just a habbit which would be hard to break.. especially at such short notice!

    :001_unsure:
  • columbia
    columbia Registered Posts: 580 Epic contributor 🐘
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    Hi

    Anyone care to post some useful formulas for converting vat at 15%please. Obviously can x by 1.15, but my brains never been good at working things out backwards, so whats the formula to work out how much vat has been included in a total amount.

    Thanks, probably being a thickie but I'm sure lots of us would be extremely grateful!!!

    Trace
  • blobbyh
    blobbyh Registered Posts: 2,415 Beyond epic contributor 🧙‍♂️
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    Bah, this also discards the trusty old 747 method to calculate the VAT element in any given amount (quick lesson for those who never learnt this; you could, for example, multiply 100 by 7 divide by 47 and you'd get the correct amount of £14.89).

    Can anyone be bothered to work out the new equivalent? We'll also need to learn how to reprogram all those calculators with Tax + & - buttons. Mines a "permanently borrowed" Casio DF-120TE if anyone would like to help me?
  • columbia
    columbia Registered Posts: 580 Epic contributor 🐘
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    Hi

    Just found out that to find out how much the Vat is in a total figure you divide the figure by 23 x 3.

    Ie £115 /23 x 3 = £15

    Trace
  • blobbyh
    blobbyh Registered Posts: 2,415 Beyond epic contributor 🧙‍♂️
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    Ah, got it and this answers your question Columbia. 747 has now become 646.

    To get the VAT element in say £100, multiply 100 by 6 then divide by 46 to equal £13.04. You can check this by multiplying the net amount of £86.96 by 15% (or 1.15) to arrive back at £100.
  • columbia
    columbia Registered Posts: 580 Epic contributor 🐘
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    Thanks Robert

    My calculator has decided to give up the ghost this evening due to lack of bright light in my house (blooming energy saving light bulbs - they are almost as dim as me!!) so I haven't been able to play around with the figures yet, but thanks a lot for your assistance.

    Trace
  • Esme
    Esme Registered Posts: 711 Epic contributor 🐘
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    Or u could just do 115 / 1.15 = 100
  • Bluewednesday
    Bluewednesday Registered Posts: 1,624 Beyond epic contributor 🧙‍♂️
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    Believe me when you are doing it constantly and in a hurry 3/23 is a quicker way - less figures to plug into the calculator!
  • mark130273
    mark130273 Registered Posts: 4,234 Beyond epic contributor 🧙‍♂️
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    so is this some time of joke ? they are changing the vat ?

    just got used to it in my new job ?
  • Esme
    Esme Registered Posts: 711 Epic contributor 🐘
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    Yeah, look on the news.. it's being cut from 1st Dec 08 for 13 months
  • blobbyh
    blobbyh Registered Posts: 2,415 Beyond epic contributor 🧙‍♂️
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    Hey, the real fun's yet to come when we're loading UK sales and purchase invoices at differing VAT rates and our systems can only automatically handle one. All that lovely manual VAT adjusting that'll make you glad of that 323 (or 646) formula! All those lovely requests for credit notes, for and against. All those people that will have to redesign their VAT invoices and finally show the rates as they're legally obliged to but they never bothered!

    Can't wait!
  • A-Vic
    A-Vic Registered Posts: 6,970 Beyond epic contributor 🧙‍♂️
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    gonna make them vat returns fun all 50 of them i do lets hope sage get their act together in time
  • mark130273
    mark130273 Registered Posts: 4,234 Beyond epic contributor 🧙‍♂️
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    A-Vic wrote: »
    gonna make them vat returns fun all 50 of them i do lets hope sage get their act together in time

    oh B**llocks !!!!
  • Primble
    Primble Registered Posts: 734 Epic contributor 🐘
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    I think that you can add different tax level oonto sage yourselves so they might not give out updates straight away. The main difference the VAT change will make is causing us lot a load of hassel as we have invoices already sent out which will cross over the change. Going to have to ring the VAt office and see what they suggest as our contracts state a final payment on it which the customer has signed to say they will pay so does that mean that we make more on it?
  • blobbyh
    blobbyh Registered Posts: 2,415 Beyond epic contributor 🧙‍♂️
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    Poodle posted a great link over on the serious side of the forum yesterday. I must have been bored last night as I read all of it!

    http://www.hmrc.gov.uk/pbr2008/vat-guide-det.pdf
  • A-Vic
    A-Vic Registered Posts: 6,970 Beyond epic contributor 🧙‍♂️
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    mark130273 wrote: »
    oh B**llocks !!!!

    lol that was exactly my responce lol
  • A-Vic
    A-Vic Registered Posts: 6,970 Beyond epic contributor 🧙‍♂️
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    o what fun also doing returns for pubs gas stations ect i also have to separate from 17.5 and 15% - at least its only a year hey by then i would have won the euro lottery quit work and moved to the baharmas :lol:
  • Pixie
    Pixie Registered Posts: 18 New contributor 🐸
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    blobbyh wrote: »
    Ah, got it and this answers your question Columbia. 747 has now become 646.

    To get the VAT element in say £100, multiply 100 by 6 then divide by 46 to equal £13.04. You can check this by multiplying the net amount of £86.96 by 15% (or 1.15) to arrive back at £100.


    Marvellous!!!

    I actually whooped and clapped when I read this! The marvels of mathematics - in making all our lives easier!!

    I presume Returns for VAT quarters that cross over December, will be made up from both VAT Rates, depending on the date of the Sales and Purchase invoices!
  • columbia
    columbia Registered Posts: 580 Epic contributor 🐘
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    Yeah, if you have a cross over (fortunately I don't), you will need to work it out on 2 rates, I really sympathise with anyone in this situation.

    I have some formulas below to help anyone who wants to work out vat, as we have all been so used to the 7/47ths......

    Vat from Gross Gross/23*3
    Gross from Vat Vat/3*23
    Net from Gross Gross/1.15
    Gross from Net Net*1.15

    Good luck everyone!!!
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