How to work out VAT with the new VAT prices?

If you want to know what the VAT is on an article using a calculator, multiply the price by 0.175. That is the amount that will be added to give you the total price. To find the price including VAT then multiply the price by 1.175. To find out how much VAT you have paid on an article, i.e the price before VAT, then divide the price by 1.175

Is this a general question or do you own your own business and are charging VAT. If this is your own business you must register for VAT with HMRC before you start charging VAT. Standard rate VAT is charged at 17.5% of course there are certain items which are "Reduced Rate" like coal which is charged at 5% and some items are "Zero Rated" 0% If you are billing a client £100 to add VAT you then Multiply £100 by .175 (100 * .175) this gives you £17.50 worth of VAT which you then ADD to the original £100 (giving you a Gross total of £117.50) ....Net = £100.00 ...VAT = £ 17.50 Gross = £117.50 If you are in business and you aren't very good with VAT or numbers etc then it might be a good idea to get an Accountant to fill out your quarterly VAT returns. Hope this helps Richard

If something costs £50 inc. vat divide by 1.175 and that gives you the price before the vat is added. So 50/1.175 = £42.55 and the vat is £7.45

ask VAT office there is formula to use to do this