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HMRC internal manual

# 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