SA Underpayment

MABLE

I completed my Self assessment online in May of this year and received a refund for x pounds. However I have just noticed I did not tell them about 3p interest on one of my external accounts. I paid the 1p tax leaving me with 2p. I know it is such a small amount but should I make them aware of this.

PlutoinCapricorn

If this is a serious question, bear in mind that HMRC require that we round our figures to the nearest pound - in our favour. So you earned £0.0 from bank interest from their viewpoint.

MABLE

PlutoinCapricorn wrote: »

If this is a serious question, bear in mind that HMRC require that we round our figures to the nearest pound - in our favour. So you earned £0.0 from bank interest from their viewpoint.

Good point and yes I was being serious. Since I received a demand from my council for 1p underpayment of council tax I am not taking any chances.

PlutoinCapricorn

I am an ultra conscientious person myself! If you look at the instructions for completing a tax return, HMRC do state that you should round your figures up or down in your favour:

https://www.hmrc.gov.uk• enter whole pounds only and do not include pence. Round down income and round
up tax paid/tax credit

ceeforcat

PlutoinCapricorn wrote: »

I am an ultra conscientious person myself! If you look at the instructions for completing a tax return, HMRC do state that you should round your figures up or down in your favour:

www.hmrc.gov.uk• enter whole pounds only and do not include pence. Round down income and round
up tax paid/tax credit

I have always thought this as a weird rule. I wonder what would happen if, in this instance, one rounded down the income to zero and rounded up the tax to £1. That really would be ultra concientious and even more pedantic.