The Accountancy Co-operative is collating a section of important documents and brief guides to help you stay informed. Please feel free to download or look at any of these. We just hope you will find them useful.

Always Something
New to Learn

Free Software
For Your Computer

To read these free guides you will need Adobe® Reader®

How to Calculate VAT when it is already included in the price!

You can use a 'VAT fraction' to find the amount of VAT that has been included in a VAT-inclusive price. You simply multiply that price by the appropriate VAT fraction.

Fractions for calculating the VAT in inclusive prices
Rate of VAT VAT fraction as given below.

Standard rate @ 20%(2011) = Price x 1/ 6
Standard rate @ 17.5%(2010) = Price x 7/47
Standard rate @ 15% (Dec'08 to end Dec'09) = Price x 3/23
Reduced rate of VAT @ 5% = Price x 1/21
Zero-rated goods have no VAT on them to calculate.

Example for a Gross Figure including Vat at Std Rate of 17.5%:
If you have a VAT-inclusive amount of £117.50, to calculate the VAT amount using the VAT fraction you: mutiply the VAT-inclusive amount of £117.50 by 7 - which gives you £882.50 and then divide £882.50 by 47 - which gives £17.50 VAT

Example for a Gross Figure including Vat at Std Rate of 15%:
If you have a VAT-inclusive amount of £115, to calculate the VAT amount using the VAT fraction you:
multiply the VAT-inclusive amount of £115 by 3 - which gives you £345 and then divide £345 by 23 - which gives £15 VAT

The VAT Deregistration Threshold from April 2011 is £71,000.
The VAT Registration Threshold from April 2011 is £73,000.

from HMRC website 26th March 2009 and 18th Jan 2011.

A co-operative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly owned and democratically controlled enterprise. Click here for more information about co-operatives.