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VAT Query

ykwong1978ykwong1978 Feels At HomeRegistered Posts: 48
I am having trouble with the VAT when I have the gross total on whether to round up or down.

For example. If I have the gross total of £6.10 then the VAT is

VAT = £6.10 x 17.5 / 117.5 = 0.908511

So is the correct VAT amount £0.90 or £0.91

I know that if you have the net value, then you round down when calculating the VAT, but is it the same when you calculate from the gross amount???

Many thanks for your help

Ying

Comments

  • AK002AK002 Font Of All Knowledge Registered Posts: 2,492
    Just round down.. the VAT man is not going to get his knickers in a twist for 1 penny.
  • Ell1eEll1e Feels At Home Registered Posts: 26
    I have always been taught to round down because by rounding up you are technically claiming more than the 17.5%
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