1. Starter Questions Starter Questions

2. Learning Intention Explain how to calculate price +VAT. 2 VAT - 17.5%

3. VAT Value added Tax Why do we pay it ? VAT means : To pay for NHS, bin collection, School education etc…… 17.5% What is the current percentage rate of VAT

4. VAT – 17.5% Example 1 How much will I pay for the computer including VAT below ? £1000 + VAT VAT – 17.5% 10%  1000 ÷ 10 = £100 5%  half of 10%= £ 50 2.5%  half of 5%= £ 25 17.5% £175 Total cost is £1000 + £175 = £1175

5. VAT – 17.5% Example 2 Price of the Plasma TV is shown below is excluding VAT. What is the total price I have to pay. £1300 (excluding VAT) 10%  1300 ÷ 10 = £130 5%  half of 10%= £ 65 2.5%  half of 5%= £ 32.50 17.5%£227.50 Total cost is £1300 + £227.50 = £1527.50

6. Now try Ex 4.1 Ch4 Pg 50 All Questions Profit and Loss