HMRC and Rounding

Jeewhizz · #1 (**permalink**) 15-07-2008, 13:06

I received an invoice this week for £35 +VAT

The VAT element was listed as £6.12 but by my calculation, the 17.5% comes to £6.125, so should be £6.13. However, my accountant says that HMRC recommend you round down, so £6.12 is correct.

Is this really correct? Can anyone point me to some info? I've found this but it doesn't seem to specifically state yes or no!

James Smith · #2 (**permalink**) 15-07-2008, 13:16

Yes - HMRC round in your favour.

Similarly a cost of £125.01 is £126 in your tax return and sales of £30,000.99 are £30,000 according to HMRC logic. Bonkers but for once they are being nice!

DavidT · #3 (**permalink**) 15-07-2008, 16:55

To be honest - a fraction of a penny and rounding... it's not worth typing a sentence. (ie. HMRC is unlikely to ever kick up a fuss on which way the rounding goes).

Fuzzy · #4 (**permalink**) 15-07-2008, 17:01

I always got informed to round down - all those 0.0000005p will make the difference