Formula to calculate vat?

[CrazyCathy]

Is there a quick formula to calculate the 15% vat? Going for a short numeracy test for a job tomorrow (part time to fit in with children) they are aware I've not worked in accounts before but this is the last part of the interview if I pass the jobs mine. Won't be able to use a calcualtor or computer and my brain has gone numb... Thanks

I know it has been asked on here before but I searched and can't find it

[squarebear]

Divide by hundred to get 1 percent, then multiply by 15 to get 15 percent.

[Rollo]

Multiplty by 5 and then by 3 and divide the answer by 100

EG Cost without VAT (15%) = �100

100 X 5 = 500

500X 3 = 1500

1500 / 100 = 15

[tigersam258]

or perhaps take 10% then halve that and add the two together i.e.

calculate 15% of �1000
10% = �100
5% = 1/2 of �100 = �50
15% = �100 + �50 = �150

calculate 15% of �2750
10% = �275
5% = �137.50
15% = �275 + �137.50 = �312.50

I hope that this helps and good luck with the interview.

[ChuckFickens]

or multiply by 0.15 to get the vat amount or 1.15 to get the total cost with VAT so for �100

100 x 0.15 = �15vat

or

100 x 1.15 = �115 (total including vat)

[DanAB]

or, find 10% (you should know how to do that) then get half of that and add it all together.

100 / 10 = 10
10 / 2 = 5
10 + 5 = 15

[Rollo]

Of, course, it won't be that "easy" when the VAT rate goes back up to 17.5%.

[ailie]

Mental
10% will be the original number with the point just moved one place to the left (10% of �1.00 = 10p)
5% will be half of that answer
add them together & add on the original number

This will always help with an estimate answer so you know if you are roughly right
Good luck

[ailie]

reminds me of a joke posted yesterday. Noah saying goodbye to all the animals...go forth & multiply ...the snakes said.....we can't we're adders

[CrazyCathy]

Thanks everyone - I don't even know if I'll need it but I thought that last time I did vat it was 17.5% .

Rollo I don't think it will go back to 17.5% think they'll up it 20% to make up for their lost revenue but by then I will be allowed to use a calculator!!! Hopefully.

Allie love the joke

[tigersam258]

if you follow my method you can simply take half of the 5% answer ie. 2.5% and add all three together to get 17.5%

calculate 15% of �1000
10% = �100
5% = 1/2 of �100 = �50
2.5% = 1/2 of �50 �25
17.5% = �100 + �50 + �25 = �175

[barry1010]

To find out how much VAT is on a gross amount, divide the amount by 1.15, then subtract that figure from the gross.

So, an item is �100 inclusive of VAT.

100 / 1.15 = 86.95

100 - 86.95 = �13.05.

So now we know that the �100 item is actually �86.95 with �13.05 VAT (at 15%)

[dzug]

Well 20% will be easy - take 10% and double it.

[rov1200]

Being pedantic if you take barry1010's answer you will get a different value if his result is used;

ie 86.95 + VAT hoping to get to �100

you don't

86.95 + 15% gives �99.99

This is because of rounding errors.