Maths question

[Nick]

No, that's not right   

[Pirate]

Therefore the square on the hypotenuse = the sum of the squares on the other two sides:

[Barman]

http://www.accountingissue.info/vat-calculate-percentage-fraction.html

Scroll down to the tables 

Oh dear. I know you mean well Pasties, and for that I thank you, but I'm struggling to get ny head around that lot.
I'll keep reading it and it might suddenly click.

Quite simply, on this scheme, if I collect 100 pounds VAT, I only pay the VAT man 65 pounds fifty pence of it, and the remainder of it (34.50 ) is set against what I haven't claimed for in VATable purchases in connection with my business.

Lets just clarify one thing!

If you sell ?100 worth of stuff, you still charge the customers ?115 right?

[GROWLER]

As I read it if you're on the 6.5% rate then that's what you apply on your invoices to your customers. Yes? When you come to fill in your VAT form that's just totalling up all the VAT you've collected in the time frame.

The trickier bit (which is why I found the VAT fraction tables) is how you calculate what you can reclaim during the period and for your 6.5% rate the fraction is 13/213 i.e. multiply the bill total by 13, divide by 213 and you'll have the amount you can reclaim.

Of course, I could have got it all wrong ...  

No. I still charge my customers the full 15% but only give the VAT man 6.5% of the VAT back, ie, 65 pounds out of 100 pounds received.

[Nick]

Will this torture never end 

[Barman]

I think he should buy a canoe... 

[GROWLER]

http://www.accountingissue.info/vat-calculate-percentage-fraction.html

Scroll down to the tables 

Oh dear. I know you mean well Pasties, and for that I thank you, but I'm struggling to get ny head around that lot.
I'll keep reading it and it might suddenly click.

Quite simply, on this scheme, if I collect 100 pounds VAT, I only pay the VAT man 65 pounds fifty pence of it, and the remainder of it (34.50 ) is set against what I haven't claimed for in VATable purchases in connection with my business.

Lets just clarify one thing!

If you sell ?100 worth of stuff, you still charge the customers ?115 right?

Yes.

[Barman]

http://www.accountingissue.info/vat-calculate-percentage-fraction.html

Scroll down to the tables 

Oh dear. I know you mean well Pasties, and for that I thank you, but I'm struggling to get ny head around that lot.
I'll keep reading it and it might suddenly click.

Quite simply, on this scheme, if I collect 100 pounds VAT, I only pay the VAT man 65 pounds fifty pence of it, and the remainder of it (34.50 ) is set against what I haven't claimed for in VATable purchases in connection with my business.

Lets just clarify one thing!

If you sell ?100 worth of stuff, you still charge the customers ?115 right?

Yes.

brilliant!

We are making progress like... 

[GROWLER]

I think he should buy a canoe... 

But would I be able to claim the VAT back though?  

[Nick]

At the present rate of progress, no

[GROWLER]

http://www.accountingissue.info/vat-calculate-percentage-fraction.html

Scroll down to the tables 

Oh dear. I know you mean well Pasties, and for that I thank you, but I'm struggling to get ny head around that lot.
I'll keep reading it and it might suddenly click.

Quite simply, on this scheme, if I collect 100 pounds VAT, I only pay the VAT man 65 pounds fifty pence of it, and the remainder of it (34.50 ) is set against what I haven't claimed for in VATable purchases in connection with my business.

Lets just clarify one thing!

If you sell ?100 worth of stuff, you still charge the customers ?115 right?

Yes.

brilliant!

We are making progress like... 

YES! Please god, try and understand me!!

I still charge the full VAT 15% whack, but only have to pay the VAT man back 6.5% VAT instead of 15%.

[Pastis]

http://www.accountingissue.info/vat-calculate-percentage-fraction.html

Scroll down to the tables 

Oh dear. I know you mean well Pasties, and for that I thank you, but I'm struggling to get ny head around that lot.
I'll keep reading it and it might suddenly click.

Quite simply, on this scheme, if I collect 100 pounds VAT, I only pay the VAT man 65 pounds fifty pence of it, and the remainder of it (34.50 ) is set against what I haven't claimed for in VATable purchases in connection with my business.

Lets just clarify one thing!

If you sell ?100 worth of stuff, you still charge the customers ?115 right?

Yes.

brilliant!

We are making progress like... 

So, instead of giving the VAT man the ?15, you give him only ?6.50  

[Barman]

What was the question...? 

[GROWLER]

Have I just sorted this?

Simply multiply the amount of VAT received by 6.5%/

100 pounds (VAT received from a customer) X 6.5% = 6.5, move the decimal point over and voila, 65 pounds!!!

Is that right?

I'm pretty sure this calculation/formula of mine is correct, yes?

[GROWLER]

http://www.accountingissue.info/vat-calculate-percentage-fraction.html

Scroll down to the tables  

Oh dear. I know you mean well Pasties, and for that I thank you, but I'm struggling to get ny head around that lot.
I'll keep reading it and it might suddenly click.

Quite simply, on this scheme, if I collect 100 pounds VAT, I only pay the VAT man 65 pounds fifty pence of it, and the remainder of it (34.50 ) is set against what I haven't claimed for in VATable purchases in connection with my business.

Lets just clarify one thing!

If you sell ?100 worth of stuff, you still charge the customers ?115 right?

Yes.

brilliant!

We are making progress like...  

So, instead of giving the VAT man the ?15, you give him only ?6.50  

EEEEEEYES!!!

Taken 4 pages but I think we got there!!