# Tax Calculation Issue

I am on UK flat rate tax 14.5%

My accountant produced excel calculations as in manager and I got 0.03 difference

• First was obvious and I am not sure how it should be:
0.01 because in excel: 15.805 + 15.805 = 31.61, but manager calculates 15.81 + 15.81 = 31.62

• Second one I can not figure out, but it is reproducible and I will attache manager backup with test case
I had 2 records 164.00 * 0.145 = 23.78, but manager calculates = 164.00 * 0.145 = 23.79

Invoice has 2 items 85 + 79 = 164

The only explanation after playing with excel I have that numbers are heavily rounded up at each operation. Is that normal accounting practice?

I am not accountant and probably I am wrong, but I just want to understand.
Could someone explain me what is normal practice on rounding numbers in accountancy.

The standard practise is to round at each operation (each line item), as the tax is calculated per item - it is not calculated at the sum of the items.

I have deleted your backup reference, as this is very much a public forum.

Thank you for explanation, it doesn’t look like my accountant follows the same practice here.