Calculating tax/vat

Radsteral

i own a new company which in a shortwhile had to be registred for vat, so more calculation problems for me.
The accountant i have got is not being helpful and till i get another one, i ll have to sort out paying people right amount of money and deducting the right tax/vat

if any one can possibly give me the formula for the ones below please
1- some worker has sent me an invoice for 1000.00
need to reduce 20% tax from him

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2- add 20% to an amount of 1000

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deduct v.a.t from 1000?

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add vat to 1000
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Sorry being daft , but asking around and many many formulas being given and making my head in
many thanks

splishsplash

To find the £1000 ex VAT:
£1000/120*100

To add Vat to £1000:
£1000 X 1.20

Radsteral

i thought 1000 +vat was = 1150.??
so your 1000 x1.20 goes nowhere near this

so more confusion then ........

anyone please help

chalkie99

splishsplash wrote: »

To find the £1000 ex VAT:
£1000/120*100

To add Vat to £1000:
£1000 X 1.20

Only if VAT is 20%!

mrkbrrws

Are you talking about construction industry CIS deductions?

Radsteral

yes i work in construction industry

Radsteral

normally deduct 20% from my employees wages hence 20 percent deduction i require...
sometimes when i cant verify the employ with IR i have to deduct 30 % but as long as i know the proper formula i can do it myself then

mrkbrrws

So if your subcontractor (worker) is not VAT registered and they are due to be paid £1,000 you deduct £200 (20%) and pay them £800. The £200 is then paid over to HMRC.

I'm not really sure what you are asking about formulae?

splishsplash

chalkie99 wrote: »

Only if VAT is 20%!

That'll teach me to read properly, I assumed the OP meant a VAT rate of 20% :doh:. I'm in Ireland, we have different rates.

Sincere apologies, OP.

A quick Google reveals your VAT rate is 15%... same principle applies:

If the VAT inclusive figure is £1000, and you want to find the ex-VAT amount, then it's £1000/115*100.

If you want to add VAT to £1000, then it's £1000 X 1.15.

I have no clue about your Income tax thresholds, tax codes or NI contributions, sorry.

Ste_C

For CIS

If the £1000 is gross, I'm not sure what the formula is but the CIS tax would be £166.66. i.e £833.33 x 20% = 166.66

If the £1000 is net, the CIS tax would £1000 x .20 = £200

For VAT

If the £1000 is gross, 1000 x 3 / 23 = VAT of £130.43, net being 1000 - 130.43

If the £1000 is net, 1000 x .15 = VAT of £150

Radsteral

mkr and splish splash thanks
MKR , i know the 20 percent of 1000 is 200
all i am asking is how do you find this out ....
splish splash is right about the vat formula