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Post Info TOPIC: Separate VAT and CIS Tax from a payment
turbochippy


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Separate VAT and CIS Tax from a payment
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Having a few problems at the moment as i need to work out how much from a payment is vat and how much CIS tax has been paid.
If i am net payments with the construction industry but am registerd for vat the charge to our clients would be as follows.

(A)= £1000 gross invoice before VAT
CIS TAX    £1000 -20%=         £800
Plus VAT   (17.5% of £1000)    £175
Amount owed by customer=    £975 

SO formula is (A-20%)+(VAT on A)= B

If all i have is B how do i get back to A.


I know what your thinking "why don't you just have a look at the invoices" But our invoices are factored so we could be paid anything from 0 to 85% of an invoice upfront as we have a concentration cap of 50% to any one customer.

Would appreciate any help

Thanks

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Zee


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Hi, I think what you have is a simple bit of algebra.

After cleaning up, the formula is

A = 40/39*B (40 divided by 39, multiplied by B)

If you have any known answers, you can check the equation.

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turbochippy


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FANTASTIC!!!! Even my accountant was strugaling with that one.

Many many thanks.

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