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Vat calculation at 20%

  • 5 posts
  • # 72969

 

Hi,
Can someone please help? I am just about to take my IBC level 1 Manual exam and I'm very nervous.
 I just want to confirm the Vat calculation for 20% i.e. the calculation I have been using for Vat at 17.5% was amount / 117.5 x 17.5 = the Vat
I have been told I have to use 20% figure in my exam so I just want to confirm the calculation needed.

Please Help

Nervous Gemma :)
  • 5 posts
  • # 72970

I have just seen on another thread the calculation is     amount x 20 / 120 = VAT    is this correct?
KerryB
  • 269 posts
  • # 72971

HI,

An easy way to do this for 20% is to take the full amount i.e £120, then divide by 6;  £120/6 = £20 vat which then gives the net value of £100 (£120 - £20).

Hope this helps

Regards

Kerry

  • www.berrybookkeeping.co.uk

    My responses are based on my opinions, not necessarily facts.

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KerryB
  • 269 posts
  • # 72972

Or the £ gross amount/120 x 20

  • www.berrybookkeeping.co.uk

    My responses are based on my opinions, not necessarily facts.

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  • 5 posts
  • # 72973

Thanks so much Kerry,sounds like such a silly question but I really wanted to be sure.

Keep your fingers crossed for me I'm going to take my exam now

KerryB
  • 269 posts
  • # 72974

No problem! better to be sure Laughing

Good luck with your exam!

Regards
Kerry

  • www.berrybookkeeping.co.uk

    My responses are based on my opinions, not necessarily facts.

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  • 27 posts
  • # 72979

PaperWork Done said:

“

 

Hi,
Can someone please help? I am just about to take my IBC level 1 Manual exam and I'm very nervous.
 I just want to confirm the Vat calculation for 20% i.e. the calculation I have been using for Vat at 17.5% was amount / 117.5 x 17.5 = the Vat
I have been told I have to use 20% figure in my exam so I just want to confirm the calculation needed.

Please Help

Nervous Gemma :)

”

Hi

I have not seen it expressed as such, however, hopefully the following will help. If you have the gross amount (including vat) I've always used the following method :- for 17.5 % multiple the gross by 7 and divide by 47.  For 20% you just have to divide by 6.  Example: amount incl vat £120. Divide this by 6 and you get the Vat of £20.  If you have the gross and want to find the net then it is £120 divided by 1.20. Similarly for vat at 17.5% to get the net figure divide by 1.175.

Good luck with the exam.

Regards,

Lynne
KerryB
  • 269 posts
  • # 72981



How did you get on in the exam Gemma?

Edited at 14 Jul 2011 08:00 PM GMT

  • www.berrybookkeeping.co.uk

    My responses are based on my opinions, not necessarily facts.

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  • 5 posts
  • # 73011

Hi Kerry,

I passed with 96% so I am really happy. I can't wait to crack on with the next stage now :)
What level are you on? I'm really enjoying it, I have 2 young kids so when they are tucked up in bed I open my books and study It helps my relax which sounds strange.

KerryB
  • 269 posts
  • # 73052

Hi Gemma,

That's really good, congratulations on your distinction Laughing

I am going to complete my level 2 computerised exam this evening, so fingers crossed!, then I will get started with my level 3 manual; I have the material ready and waiting!

Good luck with your studies, I am sure you will be just fine.

Best regards

Kerry

  • www.berrybookkeeping.co.uk

    My responses are based on my opinions, not necessarily facts.

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