Personal Tax - Rounding

ReelSpike

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 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??)

Thanks

CeeJaySix

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

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

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

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.