Vat Changes To The Prices On Your Site

[Darren B]

PS. Who sits down and works these out? or am I missing some elemental bit of arithmetic?

People that are paid to much and have too much time on there hands, thats what i keep telling my accountant but he takes no notice

[acompton]

PS. Who sits down and works these out? or am I missing some elemental bit of arithmetic?

7/47 ~= 17.5/(100 + 17.5) which is the exact VAT calculation

[Mike Hughes]

7/47 ~= 17.5/(100 + 17.5) which is the exact VAT calculation

Top marks to Alan.

The question wasn't why it works. It was how do you work out that 17.5/(100 + 17.5) is equivalent to 7/47? Is there some maths to derive that or do people just sit there trying 1/7, 2/13, etc.

Mike

[Darren B]

Is there some maths to derive that or do people just sit there trying 1/7, 2/13, etc.

No people like Alan sit there trying lots of combinations

[TraceyHand]

Or x3/23

ahh..that takes me back!
When I left school, I worked at an accountants.
I was having to use x3/23 then because some of the books we were doing were from the previous 15% VAT rate.
Not sure if it changed while I was there or had already changed previously but it brings back memories!

*feels old now*

[kathynewman]

Common mistake. The discount works out at only about 2.1%. So nearer Ł21 than Ł25.

Mike

Well Newround on BBC yesterday stated that a Ł1000 holiday would now be Ł25 cheaper!

[kathynewman]

Well i was wondering the same thing, im guessing it would be from 12midnight sunday

Think that the BBC website yesterday quoted something like "as soon as possible" will go and see if I can find reference otherwise we are all going to be up late on Sunday night!

[TraceyHand]

He definitely said from Monday (December 1st) so I guess that's why people are debating the whole 'midnight Sunday' thing

[TraceyHand]

Well Newround on BBC yesterday stated that a Ł1000 holiday would now be Ł25 cheaper!

well that's true if the Ł1000 holiday is Ł1000 plus vat

[maroni35]

The government/ HMRC details on the VAT changes can be found on

http://www.hmrc.gov.uk/pbr2008/measure1.htm

There are a number of pdf files going into various depths. One of the key phrases is

"HMRC recognises that this is a change that businesses will have to implement in a short timescale. Therefore we will adopt a “light touch” in relation to errors or mistakes made in the first VAT return after the change. We will take into account the difficulties a business has faced in adjusting to the change."

Which is an acknowledgement that the chances of getting this right and sorted in a week so that accounts reconcile is pretty impossible!! Thanks for ruining my weekend Gordon and Al.

David

[gabrielcrowe]

=ROUND(SUM(A2/1.175)*1.15;2)

for those people using open office, or google docs, this is the formula.

[Sean Williams]

ahh..that takes me back!
When I left school, I worked at an accountants.
I was having to use x3/23 then because some of the books we were doing were from the previous 15% VAT rate.

*feels old now*

Crikey! That's so far back petrol was 2/6d a gallon

[Sean Williams]

am i correct in thinking we need to apply this at midnight sunday night/monday morning?

Because we don't process orders over the weekend ( I didn't say we don't work ) I think we'll set the vat change before we leave tomorrow, possibly with a mini note-ette to make our customers feel cosy and reassured

[TraceyHand]

Crikey! That's so far back petrol was 2/6d a gallon

hey now..it wasn't THAT long ago!!

[gabrielcrowe]

special note:
for those people that nave their actinc prices in NET, and they let actinic calculate the vat for display online, you no doubt took vat off, to allow actinic to add it back on.

with a little collab, mr hack and I came up with:
=round((B5*1.175)/1.15;0)

which adds 17.5 vat on, then takes 15% off, making your old net, into a new 15% net.

this will effectively keep all the prices (pretty much after rounding) the same, as far as the vat paying customer is concerned. Your final price will be the same as it was, pre-vat change.

this formula might save someone a headache.