Can anyone explain the VAT on this receipt?

Jayy77

Cold Bagel 3.75
Smoothie 2.85

"0.48 VAT TTL" 6.60
"Net TTL" 6.12

Food is generally 0% VAT with a few exceptions at 20%. 48p isn't 20% of any figure shown on the receipt. Why I have been charged that amount and how the heck do I enter it correctly when claiming my expenses?

Thanks

rs65

Its VAT on the smoothie isn't it?

comeandgo

The vat amount on a gross figure would not be 20% of anything but if you look at it as 1/6th of the gross amount it's near enough and it is the VAT on your smoothie

Lorian

The £2.85 for the smoothie includes std rate VAT
So £2.85/1.20=£2.375 which is the price before vat
£2.85-£2.375 = £0.475 rounded up to £0.48 is the Vat

If you can enter two lines on your claim the smoothie is 20% and the Bagel is 0%. I'm no VAT/expenses expert but if you can only enter one total you could probably claim it all as 0% takeway food and the company forgo claiming the VAT on the smoothie. I could be wrong here though.

Jayy77

Wow, this forum is great!

This is such a tiny little query, so thank you all for taking the time. It's only a few pence this time, but it could easily be a lot more in future and it bugged me that I didn't understand what was going on. As ever it seems I was getting my maths wrong. Thank you for putting me straight!

agrinnall

You're not the first and certainly won't be the last to struggle to get your head round VAT net/gross calculations - the saving grace now is that with VAT at 20% the calculations are a bit easier than in the days when it was 17.5% and we had to calculate 40/47ths of the gross to get the net!