Working out RRP's and correctly adding VAT

[ditavs]

[FONT='Verdana','sans-serif']Hi there this is my first time at the forum and was wondering if you guys would help clarify a few things for me. Quite new in the world of having my own buisiness and although I'm good at my job I'm unfortunately pretty ignorant when it comes to some basic fundamental skills in running an efficent buisiness! I'm currently operating as a sole trading who's not VAT registered so I would like the answer to my question based around that information...however it wont be long till I have to register for VAT but I will cross that bridge when i need to. The question I am wanting to ask is in regards to working out RRP's from trade price lists and how to add on VAT, all the suppliers I use always list a trade(ex VAT) so once I've applied 17.5% I have a true figure of how much I'm going to be invoiced for. Most suppliers put the RRP(incl VAT) on their price lists so it's easy and no working out has to be done but some don't list RRP's. Below I've listed two ways of working out an ExVat List price....could you indicate which one i would use? It's based on me wanting to make 40% on the product I'm selling.[/FONT]
[FONT='Verdana','sans-serif'] [/FONT]
[FONT='Verdana','sans-serif']List price[/FONT]
[FONT='Verdana','sans-serif']+17.5%[/FONT]
[FONT='Verdana','sans-serif']+40%= RRP[/FONT]
[FONT='Verdana','sans-serif'] [/FONT]
[FONT='Verdana','sans-serif']or should it be:[/FONT]
[FONT='Verdana','sans-serif']List price[/FONT]
[FONT='Verdana','sans-serif']+17.5%[/FONT]
[FONT='Verdana','sans-serif']+40%[/FONT]
[FONT='Verdana','sans-serif']+17.5%=RRP[/FONT]
[FONT='Verdana','sans-serif'] [/FONT]
[FONT='Verdana','sans-serif']Reallllllly appreciate your help on this guys[/FONT]
[FONT='Verdana','sans-serif'] [/FONT]
[FONT='Verdana','sans-serif']Thanks in advance!![/FONT]
[FONT='Verdana','sans-serif'] [/FONT]
[FONT='Verdana','sans-serif']PS: While were on the subject....how would this change when I become a vat registered company?[/FONT]

 

[ditavs]

I don't quite know why the post above was all messed up and it wont let me edit it....so thought I would post it again as a reply. Please if there's any advise someone can give me I would highly appreciate it!!

ORIGINAL POST:

Hi there this is my first time at the forum and was wondering if you guys would help clarify a few things for me. Quite new in the world of having my own buisiness and although I'm good at my job I'm unfortunately pretty ignorant when it comes to some basic fundamental skills in running an efficent buisiness! I'm currently operating as a sole trading who's not VAT registered so I would like the answer to my question based around that information...however it wont be long till I have to register for VAT but I will cross that bridge when i need to. The question I am wanting to ask is in regards to working out RRP's from trade price lists and how to add on VAT, all the suppliers I use always list a trade(ex VAT) so once I've applied 17.5% I have a true figure of how much I'm going to be invoiced for. Most suppliers put the RRP(incl VAT) on their price lists so it's easy and no working out has to be done but some don't list RRP's. Below I've listed two ways of working out an ExVat List price....could you indicate which one i would use? It's based on me wanting to make 40% on the product I'm selling.

List price
+17.5%
+40%= RRP

or should it be:
List price[/font]
+17.5%
+40%
+17.5%=RRP

Reallllllly appreciate your help on this guys

Thanks in advance!!

PS: While were on the subject....how would this change when I become a vat registered company?

 

[ditavs]

Nobody?!!......Surely someone on here can help me ? :|