Bat21 said:The new rate is 20% but that doesn't mean adding 2.5% onto the already added 17.5%, let me explain:-
An item £100 + 17.5%VAT costs £117.50
An item £100 + 20%VAT costs £120
But an item £100+17.5% and then another 2.5% added to that = £120.43
That's a 43p over charge.
I'll get my anorak
I think you need to re-read my post SteveSteve Wright said:Bat21 said:The new rate is 20% but that doesn't mean adding 2.5% onto the already added 17.5%, let me explain:-
An item £100 + 17.5%VAT costs £117.50
An item £100 + 20%VAT costs £120
But an item £100+17.5% and then another 2.5% added to that = £120.43
That's a 43p over charge.
I'll get my anorak
Paul
I think you have the wrong idea of the VAT !
its not 17.5% + 2.5% as you put it, its simply 20% and just happens to be 2.5% more than it was before 4th Jan.
so it can only be : £100 + Vat is always going to be £120.00
Bat21 said:I think you need to re-read my post SteveSteve Wright said:Bat21 said:The new rate is 20% but that doesn't mean adding 2.5% onto the already added 17.5%, let me explain:-
An item £100 + 17.5%VAT costs £117.50
An item £100 + 20%VAT costs £120
But an item £100+17.5% and then another 2.5% added to that = £120.43
That's a 43p over charge.
I'll get my anorak
Paul
I think you have the wrong idea of the VAT !
its not 17.5% + 2.5% as you put it, its simply 20% and just happens to be 2.5% more than it was before 4th Jan.
so it can only be : £100 + Vat is always going to be £120.00
Yes £100+VAT is £120 but I know of one large retailer who were going to add 2.5% onto existing prices
Steve Wright said:Paul
I don't need to re-read your post, but if you know someone is doing that then contact HMRC, and I bet they will soon do something about it.
I make it 14.3%Richard Jackaman said:To be pedantic VAT has increased by 14.2%