VAT reduced to 5% on campsite fees
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People do like to complicate matters!!! Cornersteadies formula of deducting 12.5% ( the workings were just an illustration of how the 12.5% was arrived at) is a very simple way of working. Armed with the 12.5% figure it is very easy to use a calculator, the real thing or the one on your phone, to arrive at the new price. As part of my working life I often had to write monthly trading reports to my boss, everything was expressed in percentages.
David
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As I wrote before, New Price = 7/8 Published Price....Simples
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Why has this thread morphed into an arithmetic lesson
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It’s why there are so many lurkers W, the entertainment value-on Youtube I saw some B&W footage called the ‘keystone Kops’ it was a bunch of back in the day USA Police running around getting nothing done-quite like CT threads sometimes👍🏻
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Same reason as some morph into a grammar lesson!
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Because some .members couldn't understand how the new pitch prices were calculated, obviously.
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I forgot that some people were eligible to leave school at 12 and missed the percentages lesson.
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Numbers baffle me sometimes. If I pay £1.20 for something, surely I am paying £1 for the item, and Govt is taking a fifth in VAT ie 20p? 🤷♀️
Make it simple Corners, numbers at times are like a foreign language to me🤪
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Be careful not to fall into the same trap. the government is taking an additional fifth (or 20p) of the £1.00 you are paying for the item
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Many years ago in construction, a main contractor was entitled to deduct 2.5% of a subcontractors price for prompt payment, ( they always took it whether they paid promptly or not!). Of course this 2.5% discount had to be added to the subbies price. I’ve lost count of the number of people that just wanted to add 2.5% to the price. A costly schoolboy error. The correct method was to add 1/39th.
Sub contract value £1,000,000. Add 2.5% = £1,025,000.
Main contractor takes 2.5% discount. £1,025,000 less 2.5% = £999,375. The subbies just lost £625.
Sub contract value £1,000,000. Add 1/39 (divide by 39 then multiply by 40) = £1,025,641.03.
Main contractor takes 2.5% discount. £1,025,641.03 less 2.5% = £1,000,000. The subbies happy.
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So you are saying I am paying 80p for item, and 40p goes to Govt?😡
(Math’s for a 7 year old......😂)
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Does it change because it’s a VAT reduction on an already given price, as opposed to giving a price, then adding the current rate of VAT?
(apologies for being slightly off thread)
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That’s what I thought. That’s the maths used on our trees, Cost £2000, plus 20% VAT. We paid £2400.
So, someone reduce that down to only 5% VAT? Surely it’s £2050?🤷♀️
I somehow suspect that the full reduction isn’t being wholly passed onto the customer, as it’s coming off a price with VAT already applied. 😡
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No, sorry. Maybe i miss understood your post. The seller wants £1.00. the gov. wants 20% of the sales value so you pay £1.20. and the seller gives the gov. 20p.
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£2000 + 5% = £2100.
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Oops, you are right🤪
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Now you have corrected the maths, the £2400 would be reduced to £2100, so you can see that you would save £300, which is 15% of the £2000.
However, to avoid all that working back, £300 as a %age of £2400 is 12.5%, so just deduct 12.5% from the old price, or a nellie said, divide by 8 and multiply by 7 to get the new price.
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Yup, I can see that now thanks. I think my problem isn’t the arithmetics, it’s the mathematics ie how to do the calculation sequence. There was a huge gap in my Maths schooling, long term illness of Maths teacher and all we got was random cover depending on who didn’t have a class, and the lure of the hockey field proved too much as well. So my Maths is dodgy, but I can’t half crack a hockey ball.😁
I don’t use Maths enough nowadays. Must try harder. C-, and that’s being generous🤪
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Haha i really started some thing here.
Now this is how i was taught my fees are £340.20 for my next booking.
So i divide that number £340.20 Divide by 100 then times 20 to find 20%. Which gives me £68.04. This is now the base price minus the vat. So £340.20-£68.04 =£272.16. I Then divided this by 100 again and times by 5 to give me 5% which is £13.61. So my site fees should be £285.77. But this 12.5% off the stated price is still only adds up to 17.5% so who stole my 2.5% lol
So really it should be a 15% reduction off stated prices not 12.5% ??0 -
A 15% reduction in VAT leads to a 12.5% reduction in the published price, always.
VAT is included in the published price, and when it was 20% you were paying 120% for your pitch when paying. 100% for the pitch which went to the club and 20% VAT which went to HM.
So to keep things simple imagine you were paying the wardens £120, the club keeps £100 (the cost of supplying a pitch) and passes on £20 to HMRC, as 20% of £100 is £20
Now if VAT is reduced by 15% to 5%, the club will still charge you £100 for the pitch but now the VAT is 5% of £100 which is £5 so you will pay the nice wardens £105.
You have saved £15, to calculate percentage saving you find the saving, divide it by the original price and multiply by 100, so the percentage saving is 15/120 x 100 which is 12.5%.
This 12.5% will be the same no matter what the amount you pay, as I tried to show by using algebra a few pages ago
Hope this helps if not, just take the money
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I use the Star Trek theory, Spock is all logic and calculations, Kirk is all illogical “try it this way instead”. Both get there, both achieve. Room for both. If you get a combination, then you get a genius!😁
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