The Book-keepers Forum (BKF)
The Book-keepers Forum (UK) -> General Book-keeping & Accounting -> VAT Calculations
Post Info TOPIC: VAT Calculations
tina


Member

Status: Offline
Posts: 16
Date:
VAT Calculations
Permalink  

Hi all

Am now doing training link for level 2 manuals, have encountered problem had when doing level 1 with the homelearning direct course, when i subtract the VAT from the total then add the net and VAT together again, if there are more than 2 numbers after the decimal point quite often the total is out by 1p, got told before when have total multiply total by 7 then divide by 47, (instead of just subtracting 17.5%), and that gives you your VAT amount, which it did. But now the figures don't quite add up again, why?disbelief

Thanks in advance

tina



__________________
farmergiles


Veteran Member

Status: Offline
Posts: 96
Date:
Permalink  

The calculation you are quoting is for when VAT was at 17.5%. It is now 15% so the calculation you want is x3 divided by 23. This should straighten it out for you.
It is normal with VAT to round down but there are the odd occasions when you need to round up so that you balance correctly and don't spend hours hunting 1p.

__________________
BackOfficeGroup


Guru

Status: Offline
Posts: 882
Date:
Permalink  

I think you are having a problem in rounding, round up or down.

An example:

Total cost say £200
the VAT element of this using 7/47 is 29.787, rounded up is 29.79
the net therefore is 200 - 29.79 = 170.21

If you take the net £170.21
the VAT element by multiplying by 17.5% is 29.786, rounded up is 29.79
the gross is 170.21 + 29.79 = 200.00

If the third decimal place is over 5 then round up, if 4 and under then round down and always keep it consistent.

P

__________________
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.
The Book-keepers Forum (UK) -> General Book-keeping & Accounting -> VAT Calculations
Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  
©2007-2024 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: bookcertltd@gmail.com.

Privacy & Cookie Policy  About