VAT question

[robfosters]

Ok, how much is the original price of an product if you have to pay £500 inc VAT?

 

[robfosters]

Thank you for settling an argument. I will now be informing my argumentative brother that he has been paying too much tax on his private jobs.

 

[robfosters]

Is he doing 20% of the total price? 20% of £500 is £100 VAT so £400 cost before VAT. That's a common mistake.

Yes, exactly that.

 

[robfosters]

I said he should just charge a price and forget the vat completely.

probably not the best advice tbh, but then I’m no accountant.