Tax figures?

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    Tax figures?

    Might be a silly question but I just want to be completely accurate. On the self assessment for my rental income I read something about rounding expenses up & income down. Now let's say my income was £7,020,40 and expenses were £556.83 making the final income £6,463.57. How exactly should I round up & down? Of course I know how to round up & down but how should I be putting it down on the tax?

    #2
    Things that make you pay more tax (like figures for tax already paid, expenses...) you can round up to the nearest pound.

    Things that make you pay more tax (like figures for interest received, income, ...) you can down up to the nearest pound.

    It will save you about 55p in tax

    It applies to the FINAL number that goes in the tax box - so if you buy a new door handle at £5.50 that remains at £5.50 in your expenses worksheet.

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      #3
      So even if the income was say £7,020,90 I'm rounding this down to £7,020,00? And say the expenses are £556.10 I have to round this up to £557? And if so how should I calculate this, do I do it from the rounded figures which will make the final income £6,463.90 then what do I round that to down or up? Sorry to go on it's my first assessment so want to make sure it's 100% accurate.

      Comment


        #4
        As I recall this that rounding happens automatically when you submit SA.
        I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

        Comment


          #5
          Originally posted by ben100 View Post
          Sorry to go on it's my first assessment so want to make sure it's 100% accurate.
          You should bear in mind that they tax you on what YOU report. They are not actually going to be bothered about "100%" accuracy, just accuracy... if you can follow that 'logic'. 55p is neither here nor there for anyone. Even if you were to be audited (as likely as the MoD being prosecuted for fraudulent selling of arms to Saudi) and you couldn't find that one £5.50 receipt for the keys you got cut, no one is going to imprison you or fine you. Having no proof at all of your expenses or income would be a different story though...

          If it's your first time, I would highly recommend you read the helpful notes that come with the forms.

          Comment


            #6
            Originally posted by theartfullodger View Post
            As I recall this that rounding happens automatically when you submit SA.
            Do you mean when it's done online as I unfortunately am having issues with their system and unable to so have to submit by fill & post.

            Comment


              #7
              tatemono,

              Yes I understand what you are saying I guess it's just me being a perfectionist. I'm aware of everything just wanted to know what the answer to my previous post was:

              So even if the income was say £7,020,90 I'm rounding this down to £7,020,00? And say the expenses are £556.10 I have to round this up to £557? And if so how should I calculate this, do I do it from the rounded figures which will make the final income £6,463.90 then what do I round that to down or up? Sorry to go on it's my first assessment so want to make sure it's 100% accurate.

              Also I do not round any of the actual individual expenses up say an item bought for £5.20 that would stay as that not rounding up to £6. Only the total expenses number gets rounded up is that correct?

              Comment


                #8
                Originally posted by ben100 View Post

                Do you mean when it's done online as I unfortunately am having issues with their system and unable to so have to submit by fill & post.
                Yes online rounds automatically, if you are filing for 19/20 you will get an instant penalty for filing paper form late I think (deadline 31/10/20) your return will also draw attention as one of the 3 people left in the country filing on paper, so best sort it online if you can.

                Comment


                  #9
                  Yes I am aware of that but I did speak to them concerning that & explained the circumstances & was told penalty should be removed when appealed so should be fine.

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