Benificial Loan

As a person …I would like to save tax….so I would select the method giving less benefit amount.

And as hmrc ….I would like to get more tax ….so I would select the method which gives more benefit amount.

In exam u need to calculated via both the methods and select the one which gives less amount if the tax payer is doing the self assessment. ( my opinion)

Hmrc will only interfere which the difference is big….or else nt….

You should calculate both methods in the exam but always select strict method. If avg method gives higher amount the taxpayer will choose the strict method. If avg method gives smaller amount hmrc will choose the strict method.
If there is no repaidment, you only need to calculate the strict method.(avg method is not required )