VATVAL04100 - 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

Description Amount Total
450 admissions at £1 - £450.00
Less cost of 450 race cards £39.00 -
Add 50% compliation 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:

Description Calculation Amount
z/r percentage 58.5 x 100 / 450 13%
If total income is £15,000 z/r value is £15,000 x 13% £1950
Consideration for s/r supplies £15,000 - £1950 £13,050
Output tax due £13,050 x 1 / 6 £2175

Example of the calculation used in Nexus

Description Amount Total
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