Is this gross figure right for a net saving payment

roxy28

Net £108.00

Is gross £129.60p, it looks right @ 20% tax, just making sure.

YorkshireBoy

£108 x 1.25 = £135 (gross from net)


£135 x 0.8 = £108 or £135 - 20% = £108 (net from gross)


So your gross figure isn't correct.

roxy28

YorkshireBoy wrote: »

£108 x 1.25 = £135 (gross from net)


£135 x 0.8 = £108 or £135 - 20% = £108 (net from gross)


So your gross figure isn't correct.

Ok thanks for quick reply.
I worked it out wrong then so £135.00 gross it is, i only had the net figure.

xylophone

If net is £108, then this is equal to 0.8% (4/5) of the gross - the gross must therefore be £135.

roxy28

xylophone wrote: »

If net is £108, then this is equal to 0.8% (4/5) of the gross - the gross must therefore be £135.

Ok thanks as well, i need a maths lesson.

summersetsheep

One way I like to think of this is to think of doing the opposite of what they did to the number.

To take away 20% of A, you essentially are asking for 80%. If you multiply by 0.8 you get 20% taken away from A. To get back to A after doing this, divide by 0.8 rather than multiply.

So if you know a final number and the %, you know that they multiplied by the percentage number so if you divide, you get back to the original amount.

This works for growing too, such as going up by 20% is to multiply by 1.2. So to work out what it was before, you could divide by 1.2.

roxy28

summersetsheep wrote: »

One way I like to think of this is to think of doing the opposite of what they did to the number.

To take away 20% of A, you essentially are asking for 80%. If you multiply by 0.8 you get 20% taken away from A. To get back to A after doing this, divide by 0.8 rather than multiply.

So if you know a final number and the %, you know that they multiplied by the percentage number so if you divide, you get back to the original amount.

This works for growing too, such as going up by 20% is to multiply by 1.2. So to work out what it was before, you could divide by 1.2.

Just hard to get the full swing of maths, simple things is about the max.

Is this near as dammit?

Gross Savings = £1355.00

Savings Tax = £271.00 basic tax @ 20%

Just another type of example.

colsten

roxy28 wrote: »

Just hard to get the full swing of maths, simple things is about the max.

Is this near as dammit?

Gross Savings = £1355.00

Savings Tax = £271.00 basic tax @ 20%

Just another type of example.

£271 is 20% of £1,355. If £1,355 is the interest you get on your savings, £271 is the tax payable by a basic rate tax payer.

If £1,355 is the balance of your savings, the amount of interest you will get is minute, and 20% of it is even more minute.

roxy28

colsten wrote: »

£271 is 20% of £1,355. If £1,355 is the interest you get on your savings, £271 is the tax payable by a basic rate tax payer.

If £1,355 is the balance of your savings, the amount of interest you will get is minute, and 20% of it is even more minute.

Yes thanks colsten,

£1,355 was the gross savings interest, so £271 would be the tax on that at 20% basic tax payer.

polymaff

roxy28 wrote: »

Just hard to get the full swing of maths, simple things is about the max.

Don't feel bad about it. I've received loads of S975 Tax Certificates from Banks and Building Societies where they've got the arithmetic wrong - and seriously wrong at that :)

One less mistake for them to make after April 2016.