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Round up or down

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Bobziz
Bobziz Posts: 666 Forumite
Fifth Anniversary 500 Posts Name Dropper
Hopefully an easy one to answer - I recently submitted an estate return from which I calculated tax due at £13,266.60. I paid £13,266 thinking that I should round down. Looking at the account statement online, HMRC are saying tax due is £13,266.60. The tax is not actually due until the end of January next year. Question- will I be required to pay the 60p ? 

Thank you 

Comments

  • TheGreenFrog
    TheGreenFrog Posts: 359 Forumite
    100 Posts Second Anniversary Name Dropper
    If HMRC allowed taxpayers to round down their payments to the nearest £1 and then just wrote off the balance they would be foregoing a lot of money each year for no good reason.  Assuming 37 million taxpayers that is perhaps £18 million a year. 
  • molerat
    molerat Posts: 34,616 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Taxable amounts are truncated to whole pounds but the tax due is to the penny.
  • Bobziz
    Bobziz Posts: 666 Forumite
    Fifth Anniversary 500 Posts Name Dropper
    Thanks both, I think I had assumed that the round down income received rule also applied to tax due.  I'll pay the 60p then.
  • Green_hopeful
    Green_hopeful Posts: 1,166 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    My husband submitted his dad’s tax and it was pence out. They sent a letter to say they were not going to pursue the pence but I thought the letter would have cost significantly more than the pence, even just in postage. 
  • TheGreenFrog
    TheGreenFrog Posts: 359 Forumite
    100 Posts Second Anniversary Name Dropper
    My husband submitted his dad’s tax and it was pence out. They sent a letter to say they were not going to pursue the pence but I thought the letter would have cost significantly more than the pence, even just in postage. 
    Very true!  But probably automated and designed to say that the amount is still owed even if they will not chase for it.
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