Gross and net
Options
Parki82
Registered Posts: 50
Hi all
At the risk of sounding completely thick I have a question...
So currently studying the personal tax module, and gross and net amounts came up.
So gift aid payments total £800 net gross equivalent £1000.
This got me thinking about the 20% vat etc and the dividing by 1.2, so why are we dividing by 1.25 here???
Having a total blonde moment.. can someone help?
Thanks
At the risk of sounding completely thick I have a question...
So currently studying the personal tax module, and gross and net amounts came up.
So gift aid payments total £800 net gross equivalent £1000.
This got me thinking about the 20% vat etc and the dividing by 1.2, so why are we dividing by 1.25 here???
Having a total blonde moment.. can someone help?
Thanks
0
Comments
-
Because with one you are trying to find out the figure before the 20% was taken off
1000 - 20% = 800
Which would be 100/80 (1.25) x 800
Where as with the other you are trying to find out the figure before 20% was added on
833 + 20% = 1000
Which would be 1000/1.20
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.4K For AAT students
- 263 NEW! Qualifications 2022
- 144 General Qualifications 2022 discussion
- 9 AAT Level 2 Certificate in Accounting
- 44 AAT Level 3 Diploma in Accounting
- 66 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 268 VAT
- 90 Software
- 271 Tax
- 133 Bookkeeping
- 7.1K General accounting discussion
- 195 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 578 Job postings
- 16 Who can benefit from AAT?
- 35 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership