The Beeb and VAT

[TonyEnglish]

I've just seen this on the beeb


VAT: What you could save
£149 Apple Ipod Nano 16gb - save £3.73
£475 Aspinal of London leather handbag - save £11.88
£90 Camper walking shoes - save £2.25
£10,000 TagHeuer watch - save £250

Linked to show I'm not making it up

Can aybody see the error?

Using the Tag watch example. If the watch was £10k with 17.5% vat, then minus the vat it was 8510.64. Adding the 15% Vat makes the new price 9787.23, a saving of 212.77, somewhat less than the £250 quoted.

All the person has done is reduce the overall starting price by 2.5%.

[Spacecadet]

I heard on the news this morning that a lot of the smaller retailers aren't going to bother repricing anything, its simply far too much hassle

[expat]

Originally Posted by TonyEnglish

Linked to show I'm not making it up

You couldn't make it up. sigh.

[basshead]

Originally Posted by TonyEnglish

Can aybody see the error?

Its glaring

Good spot, most people will just take 2.5% off coz dey is fick innit

[minestrone]

I'm more shocked we have to explain percentages in this way.

"10% of 100 is 10"
"10% of 1000 is 100"

It is a bloody percentage, we know how it works.

[TheFaQQer]

You can report it here!

Normally, they are pretty quick to correct some errors like this.

[Pinto]

The prices quoted are without VAT

£10,000 + 17.5% VAT = £11750
£10,000 + 15% VAT = £11500

Saving = £250

[Beefy198]

I've already heard one person asking what's the easiest way to work out 2.5% off a retail price. I didn't have the patience to attempt to explain how percentages work in this case.

Although I did have to google how to work out how much the VAT is on the gross cost of something ... used to just do cost*(7/47), but obviously that won't work anymore.




Just in case you are wondering, it's cost*(3/23)

[TonyEnglish]

Originally Posted by Pinto

The prices quoted are without VAT

£10,000 + 17.5% VAT = £11750
£10,000 + 15% VAT = £11500

Saving = £250

That works, but who quotes the non vat price for an Ipod nano. The thing looks more like the person doing the calculation has simply reduced the price by 2.5% to get the saving.

[basshead]

Originally Posted by TonyEnglish

That works, but who quotes the non vat price for an Ipod nano. The thing looks more like the person doing the calculation has simply reduced the price by 2.5% to get the saving.

Ipod nano is £149 inc VAT@17.5% on the Apple Store.