Question #25606

When calculating the cost of the trip you were using the current VAT rate of 20%,(£231-includes 20% VAT). What would the cost have been per pupil two years ago when the VAT rate was 17.5%

Expert's answer

When calculating the cost of the trip you were using the current VAT rate of 20%,(£231-includes 20% VAT):

£231 = £X + 0.2*£X,

X - cost of the trip without VAT

Therefore:

X = £231/1.2 = £192.5

the cost of the trip includes 17.5% VAT:

£192.5 + 0.175*£192.5 = £192*1.175= £225.6

£231 = £X + 0.2*£X,

X - cost of the trip without VAT

Therefore:

X = £231/1.2 = £192.5

the cost of the trip includes 17.5% VAT:

£192.5 + 0.175*£192.5 = £192*1.175= £225.6

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