What’s the new VAT Fraction?

Now that the new rate of VAT is here I’m being asked: what is the new VAT fraction?

The new VAT fraction is 20/120 or 1/6.

Why is this important?

It’s an easy way to work out how much VAT there is in a VAT inclusive amount.

For example, you buy some note pads and box of pens from the stationers. You pay £24.00 and get a till receipt that shows just the two items, note pads and pens, how much they cost, the total charge, the rate of VAT (20%), and the stationer’s details. So, what’s the VAT?

24 ÷ 6 = 4

There you have it, the VAT in £24 is £4.00.

The VAT fraction for 17.5% rate of VAT is 7/47. So to work out the VAT at 17.5% the calculation looks like this:

24 x 7 ÷ 47 = 3.57

If you have any questions please leave a comment below – I’ll respond as soon as I can.

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