Comments on: The VAT Fraction http://www.happyaccountant.com/2007/08/the-vat-fraction/?utm_source=rss&utm_medium=rss&utm_campaign=the-vat-fraction Accountancy, Bookkeeping, Payroll, Tax, VAT, PAYE, NICs, Finance, Budgeting, Cashflow, Business, Sole Trader, Limited Company, Working for Yourself, Saving Money, Saving Time Thu, 26 Jan 2012 18:45:22 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Happy Accountant http://www.happyaccountant.com/2007/08/the-vat-fraction/#comment-159 Happy Accountant Wed, 26 Jan 2011 17:43:59 +0000 http://happyaccountant.wordpress.com/2007/08/30/the-vat-fraction/#comment-159 It will be 1/6 if you are trying to find the VAT element (or 5/6 if you are trying to find the net amount) It will be 1/6 if you are trying to find the VAT element (or 5/6 if you are trying to find the net amount)

]]> By: YVONNE http://www.happyaccountant.com/2007/08/the-vat-fraction/#comment-158 YVONNE Wed, 26 Jan 2011 15:32:56 +0000 http://happyaccountant.wordpress.com/2007/08/30/the-vat-fraction/#comment-158 Hi what will the fraction be for value excl 20% vat. ie when it was 17.5% is was 40/47,so what will it be for 20% Thanks Yvonne Hi
what will the fraction be for value excl 20% vat.
ie when it was 17.5% is was 40/47,so what will it be for 20%
Thanks
Yvonne

]]> By: Happy Accountant http://www.happyaccountant.com/2007/08/the-vat-fraction/#comment-148 Happy Accountant Mon, 11 Oct 2010 18:24:38 +0000 http://happyaccountant.wordpress.com/2007/08/30/the-vat-fraction/#comment-148 If you think about it, the VAT fraction fits into this equation: VAT fraction = VAT amount/Gross Assume that the gross is £117.50 and the VAT is £17.50, then the equation would be: VAT fraction = 17.5/117.50 Put the above into fractions: VAT fraction = 7/40 divided by 47/40 = 7/40 x 40/47 reduce it to it's lowest terms (by cancelling the 40 from top & bottom) Therefore VAT fraction = 7/40 The VAT fraction for 20% will be 1/6 and can be deduced following a similar method. If you think about it, the VAT fraction fits into this equation:
VAT fraction = VAT amount/Gross

Assume that the gross is £117.50 and the VAT is £17.50,
then the equation would be:
VAT fraction = 17.5/117.50
Put the above into fractions:
VAT fraction = 7/40 divided by 47/40 = 7/40 x 40/47
reduce it to it’s lowest terms (by cancelling the 40 from top & bottom)
Therefore VAT fraction = 7/40

The VAT fraction for 20% will be 1/6 and can be deduced following a similar method.

]]> By: Barry http://www.happyaccountant.com/2007/08/the-vat-fraction/#comment-147 Barry Mon, 11 Oct 2010 15:29:30 +0000 http://happyaccountant.wordpress.com/2007/08/30/the-vat-fraction/#comment-147 How is the fraction of 7/47 derived ? How could I work it out from scratch ? I know it works but I cannot see the logic and it's driving me mad ! What is the 2011 fraction for the 20% rate ? Thanks. How is the fraction of 7/47 derived ? How could I work it out from scratch ? I know it works but I cannot see the logic and it’s driving me mad !
What is the 2011 fraction for the 20% rate ?
Thanks.

]]> By: Happy Accountant http://www.happyaccountant.com/2007/08/the-vat-fraction/#comment-125 Happy Accountant Tue, 25 Nov 2008 17:12:12 +0000 http://happyaccountant.wordpress.com/2007/08/30/the-vat-fraction/#comment-125 The new VAT fraction is 3/23. The new VAT fraction is 3/23.

]]> By: graham http://www.happyaccountant.com/2007/08/the-vat-fraction/#comment-124 graham Tue, 25 Nov 2008 11:36:56 +0000 http://happyaccountant.wordpress.com/2007/08/30/the-vat-fraction/#comment-124 help !!! What is the new fraction for VAT at 15% help !!!

What is the new fraction for VAT at 15%

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