VAT saved is the total of the VAT you have saved because Link My Books has separated your revenue correctly by tax rate.

Example:

£1,000 sales at 20% VAT
£1,000 sales at 5% VAT
£1,000 sales at 0% VAT
£1,000 sales No VAT

First, you need to work out what the VAT amount would have been if all the revenue was treated as 20% VAT.

To do that take a sum of all revenue, then divide that figure by 120 then multiply by 20.

That gives you the 20% VAT figure.

In this example that would give us £4,000 / 120 * 20 = £666.67

Then work out the actual VAT Link My Books accounted for by separating the revenue correctly.

In this example, the actual VAT is:

£1,000 sales at 20% VAT = 1,000 / 120 * 20 = 166.67
​£1,000 sales at 5% VAT = 1,000 / 105 * 5 = 47.62
£1,000 sales at 0% VAT = 0
£1,000 sales No VAT = 0

So the total actual VAT is: 166.67 + 47.62 = £214.29

Therefore the total VAT saved is £666.67 - £214.29 = £452.38