I think what Ruth was trying to explain is
£100/100 = £1
£1 x 17.5% = £17.50
Which is the VAT of the price with VAT added?
Therefore £100 - £17.50 =
£82.50 which is the price of the object without any VAT at all.
Now the VAT of the object (the object without VAT)
£82.50/100 = £0.825
£0.825 x 17.5% = £14.44
This is the VAT of the object’s price.
(Ruth’s £14.87 and my £14.44 are the same, its just rounding errors which have caused the differences.)
But I don’t understand why Ruth has done that…
So the object was £85.50 without VAT, yet
£85.50 + £14.44 = £100 (ignoring the few pennies difference)
I can explain it again…see I thought you had an amount and you needed to work out how to add the VAT on…
So let’s try this, see if it works…
Object A: = £100 (with VAT included), we need to find out how much it is minus VAT.
So £100 is the full cost (100%) plus VAT (17.5%)
So £100 = 117.5%
So the same as before £100 divided by 117.5% gives us £0.85106
So £0.85106 is 1%
Now 1% x 100% (to give you the original value)
£0.85106 x 100% = £85.11