New VAT fraction at 20%

The VAT fraction is used to quickly calculate the VAT element of a price that is inclusive of VAT.

The VAT fraction at 17.5% is 7/47.
Eg. If you fill your car with £50 of petrol on or before 3 January 2011 the VAT you will pay is £7.45 (£50 x 7/47)

At the new 20% rate the fraction is 1/6.
Eg. If you fill your car with £50 of petrol after 3 January 2011 the VAT you will pay is £8.33 (£50 x1/6).

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