Personal Tax  Rounding
ReelSpike
Registered Posts: 5 Regular contributor ⭐
Hello
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)
BUT
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 retake 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??)
Thanks
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)
BUT
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 retake 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??)
Thanks
0
Comments

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.0

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..0

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 x0

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 unnerving 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.0
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