Personal Tax - Rounding

ReelSpike Registered Posts: 5 Regular contributor ⭐
Bit of a simple question but when you are calculating the taxable benefit on provision on car and fuel - do you round up or down your answer.

I'm confused - the AAT's sample answer for the practice assignment (question one) states the first cars taxable benefit on provision to be £1,357 - calculated as 22% x (£18,500 x 4/12) which is £1,356.666667 so I rounded up to £1,357 (which is what the sample answer says)


For the second cars benefit on provision of fuel, I got £4,361 (rounded from calculation of 31% x (21,100 x 8/12) which gives £4360.666667). So using the rounding, I rounded up to £4,361 ... the sample answer says £4,360 - they rounded down.

Please help as I have my re-take in 2 days.... and this isn't a human marked question so I probably would be marked incorrectly (unless the computer marking gives it to £1 either way??)



  • CeeJaySix
    CeeJaySix Registered Posts: 645
    I noticed some of the sample answers don't always agree, but rule of thumb is always round in favour of the taxpayer. So a car benefit, the higher it is the more you're taxed, so always round down.
  • topcat
    topcat Registered Posts: 452
    this is really random some questions are rounding down others up , i havent got a clue what to do ! exam is in few days as well..
  • Kelly7
    Kelly7 Registered Posts: 218 Beyond epic contributor 🧙‍♂️
    I noticed an issue similar to this in my exam. I had to work out index numbers and it didn't say how many decimal points to work it out to. Very annoying when it could cost you marks x
  • CeeJaySix
    CeeJaySix Registered Posts: 645
    Index numbers are generally done to 3dp Kelly.

    Topcat, I followed the rule of thumb unless the question explicitly stated and didn't fail anything, so hopefully that will get you through! It is un-nerving when you can't see any rhyme or reason in the mock answers. I don't know whether the system allows for rounding errors when marking the real thing - certainly in my ACA tax compliance exam were were told the marker will not deduct marks for rounding the wrong way - but then for that we were also told to use normal mathematical rounding rules.
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