Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

VAT Valuation Manual

From
HM Revenue & Customs
Updated
, see all updates

Apportionment of monetary consideration: examples of the "Thomas" and "Nexus" apportionment calculations

Value of z/r race cards = £ 58.50

Consideration for SR supplies= £450 - £58.50 = £ 391.50

Example of the calculation used in Thomas

450 admissions at £1 each   £450.00
     
Less Cost of 450 race-cards £39.00  
Add 50% compilation charge £19.50  
  £58.50 (£58.50)
    £391.50
VAT due on SR supplies £391.50 x 1/6 £65.25

If appropriate the figures derived from a sampling exercise can be expressed as a percentage and applied to total relevant income over a period:

z/r percentage 58.5 x 100/450 13%
     
If total income is £15,000 z/r value is £15,000 x 13% £ 1,950
Consideration for s/r supplies £15,000 - £1,950 £13,050
Output tax due £13,050 x 1/6 £2,175

Example of the calculation used in Nexus

Cost of printing and postage of z/r literature £42,000  
     
Add uplift of 100% £42,000  
Full cost of providing z/r supplies £84,000  
Total costs of business (excluding depreciation) £250,000  
Proportion of costs attributable to z/r supplies 84,000/250,000 x 100 33.6%
Proportion of costs attributable to s/r supplies 100 - 33.6 66.4%
If total subscription income (including VAT) £400,000  
Consideration for s/r supplies 400,000 x 66.4% £265,600
Output tax 265,600 x 1/6 £44,266.66