Maths question

[Nick]

Why 3? 

[Snoopy]

Oi ! I've been doing VAT returns for years.

Then I am sure you'll agree that allowing Growler to pocket ?14.02 for every ?15 in VAT he takes is, to say the least, unlikely.

Why 3? 

He did the Irish exam ...... To be sure, to be sure.












Collar, lead, WALKIES!

[Nick]

Growler is not going to be happy about all this misleading advice 

[Snoopy]

  There was nothing misleading about my advice which was "Phone the VATman and check"

[Nick]

Yes, but then Growler will argue with him and get arrested 

[Snoopy]

Growler doesn't wander around gratuitously putting his foot in it like some people I could mention. 

[Nick]

 

[Uncle Mort]

Oi ! I've been doing VAT returns for years.

Then I am sure you'll agree that allowing Growler to pocket ?14.02 for every ?15 in VAT he takes is, to say the least, unlikely.

But on the flat rate scheme he's not reclaiming VAT on purchases (except, as he said, on unusually large items) so the calculation is an accepted difference between sales vat and purchase vat due back to the HMRC.


3 maths O Levels:

Pure

Applied

Additional

[Miss Demeanour]

 

Numbers are my enemy ...they never tell me what I want to hear  

[GROWLER]

Growler doesn't wander around gratuitously putting his foot in it like some people I could mention. 

Correct. I'll ring the VAT man up, and I'll be exceedingly polite.

I don't claim any VAT back that I've been charged in connection with my business, I just simply pay 6.5% VAT collected instead of 15%, so they gain a bit by not paying me what they owe me in theory, but I only pay them 6.5% of VAT collected instead of 15% to compensate.
I don't want 6.5% of 15% but 6.5% of VAT collected.

Look, I understand it, but it's the working out that's baffling me.

[Nick]

This thread has given me a headache 

[Barman]

Maths isn't and never has been my bestsest subject.

I've recently become registered to the VAT club, on the flat rate scheme, and accordingly I have to pay 7.5% of the VAT that I collect, only for the first year I only pay 6.5 %.
The downside is that I don't claim any VAT back unless it's a large purchase.
 I'm still going to be slightly 'up' at the end of the year though I estimate.

Anyway, to save me ringing the VAT office up, how the hell, and what is the formula for working out 6.5% of 15.0%. as I have to do my first return for the end of this month?

It'll be another calculation in January when the VAT goes back up to 17.5%, but they haven't yet told me what I'm going to have to pay...problee 9% I'd have thought.

Okay... if I understand correctly...  

if the gross amount you bill is ?1,000

Divide by 115 and times 100 to find the VAT... ie, the net amount is ?869.56 so the 15% VAT is ?1,000 minus ?869.56 or ?130.44

Then, you just need to find 6.5% of ?130.44 - correct?

?130.44 divided by 100 and times 6.5 makes ?8.48 (rounded up).

And I see why you get to pocket the rest as you stated you can't claim VAT back on your purchases...

[Nick]

Oh my head 

[Uncle Mort]

Ah, so it's not 6.5% of 15% but 6.5% VAT repayable.  That's just under half, 43.33% recurring of the VAT collected.

[GROWLER]

Maths isn't and never has been my bestsest subject.

I've recently become registered to the VAT club, on the flat rate scheme, and accordingly I have to pay 7.5% of the VAT that I collect, only for the first year I only pay 6.5 %.
The downside is that I don't claim any VAT back unless it's a large purchase.
 I'm still going to be slightly 'up' at the end of the year though I estimate.

Anyway, to save me ringing the VAT office up, how the hell, and what is the formula for working out 6.5% of 15.0%. as I have to do my first return for the end of this month?

It'll be another calculation in January when the VAT goes back up to 17.5%, but they haven't yet told me what I'm going to have to pay...problee 9% I'd have thought.

?130.44 divided by 100 and times 6.5 makes ?8.48 (rounded up).

That can't be right surely?
It must be just under half of what I'd pay if the full 15% was due, surely? Roughly 60 instead of 130 pounds...me pound symbol has gone AWOL again.