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> For aggregate totals of your VAT liability across your total set of invoices, you'd be fine with rounding up to the nearest pound, to the Inland Revenue's ben
by ta1243 3y ago
> For aggregate totals of your VAT liability across your total set of invoices, you'd be fine with rounding up to the nearest pound, to the Inland Revenue's benefit
On personal tax forms you have to round in the taxpayer favour. If your income is 12345.67 you round it to 12345. If your expense (say giftaid) is 12345.67 you round it to 12346.
Surprised it's the other way with VAT, but then I do very little with tax other than click a few buttons and confirm "yes, you have to tax me as I have children".
- vidarh 3y agoI'm not sure it's the other way with VAT, as I said it's been many years and the rules may well have changed multiple times. The key, though, is that with taxes, if at all unsure you've got the rules right, the safest option is to round in the tax offices favour. It's in general a lot less painful to explain an overpayment than underpayment if something is broken. Of course, better yet, get it right.