Calculating VAT? help for sisters maths gcse :S

Former Member

She's got her maths gcse tomorrow (calculator) and I couldn't help her out with calculating VAT, you know the whole 17.5% business? Does anyone here know maths really well and could give me an example that I could leave out for her before she goes in for her test tomorrow?

Bitesize is shit :banghead:

Former Member

Retailer sells item they bought for £20. How much should they charge including VAT?
VAT = 17.5%

17.5/100 x £20 = 0.175 x 20 = £3.50
Item incl VAT = £20 + £3.50 = £23.50

OR

Item costs £20 retail. How much did the item cost before VAT?
VAT = 17.5%

Retail price = 100% of cost + 17.5% VAT = £20 = 117.5%
.: 100/117.5 * 20 = cost before VAT = £17.02

Former Member

The easiest way to work out 17.5% in your head for VAT is:

10% + Half of that (5%) + Half of that (2.5%) = 17.5%

But to work it out on a calculator:

VAT = Price x 0.175

Price + VAT = Price x 1.175

Hope that helps.

Former Member

I you both.
Big sis saves the day. (well with a little help :flirt: )

Former Member

Isn't there a way of doing it which involves multiplying by 1.175?

Former Member

Sofie wrote:

Isn't there a way of doing it which involves multiplying by 1.175?

yeh wooooaaaaaah just posted it above