Vapour calculates the duty due following the guidance from HMRC (emphasis ours):
Unless HMRC has permitted the use of an alternative method that does not disadvantage the revenue, you must work out each constituent stage of the calculation process to a minimum of 4 decimal places.
To complete the remittance advice W5 or W5D, truncate the quantity of alcohol established at the end of the calculation process to 2 decimal places.
You should work out the amount of duty due to 2 decimal places.
This means that the following calculation is undertaken whenever duty is calculated:
LPA (Actual) = LPA rounded to the nearest 4 decimal places.
LPA (Reportable) = LPA truncated to 2 decimal places.
Duty Rate = The rate for the LPA at the specified strength as per your configured settings.
Duty Due = LPA (Reportable) x Duty Rate, truncated to 2 decimal places.
We include the figures for LPA (Actual), LPA (Reportable) and Duty Due on our reporting output to help with submitting any details to HMRC.
Was this article helpful?
That’s Great!
Thank you for your feedback
Sorry! We couldn't be helpful
Thank you for your feedback
Feedback sent
We appreciate your effort and will try to fix the article