Hi There,
I am arguing with my boss over how to minus a percentage.
If you want to work out the VAT on £100 you divide by 1.2 and then minus the £100 which is £16.67 VAT
If i then want to pay someone 12% of that £100 my boss says u times by 0.12 which gives you £12 where as i think you divide by 1.12 and then minus the £100 which gives you £10.72
Can somebody please tell me which way is the right one
Many Thanks
Stuart
You multiply for the 12% because you want to find 12% of £100. If your £100 was including the 12% then you would indeed divide by 1.12
You divide for VAT because the £100 figure already includes VAT. If your £100 was before the addition of VAT then you'd multiply