I initially logged the tax return based upon the steps here in a journal entry Entering and Paying Corporation Tax Liability but this was incorrect and have gone back to make changes to the tax return so will be expecting a refund. I have deleted the journal entry but how do I account for the money leaving the bank account and then returning? Would I enter that as a journal entry showing the correction?
Hi @tobyw7
Just to confirm - is it that you’ve made a payment to HMRC for corporation tax, and they are refunding some back to you?
If this is the case, you can just tag it as a payment to HMRC (selecting “Corporation Tax”), and then the money back in can be tagged as a refund from HMRC (again, selecting “Corporation Tax”).
Hi Matthew
That’s correct, yes. Sounds like the best way to go.
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