Corporation Tax Refund

Accounting
1

How do I account for a partial refund of Corporation Tax in QuickFile?

The refund of £423.75 has been paid into the current account, tagging the transaction credited the “2320 Corporation Tax” account.

I’m expecting the CT liability for the year ending 2016 to be £900, I’ve created a journal as below:

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The CT is correct on the P&L and shows up as “8500 Corporation Tax Charge for the Year” at £900.

However, the balance sheet shows the “2320 Corporation Tax” liability for year end at £1346.15 (correct tax liability plus the refunded amount plus the 22.40 that was originally due in y/e 2015, but the refund took this into account) - how do I fix it? The refund was received in y/e 2016 and was a partial refund for Corporation tax paid in y/e 2014 (losses in y/e 2015 were carried backwards to the previous period).

This is the nominal code view for CT:

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Any help would be appreciated.

2

Although this is a 3 year old post, I’ll answer it based on a few assumptions.

  1. In 2015 your tax was £22.40 but you paid them £446.15 which was not tagged as corporation tax payment or was paid from personal account, as its not shown in your record above.
    So they refunded you the difference of £423.75
    Action
    Trace your payment of the £22.40 tax due for y/e 2015 and what the refund is for. And correct them in your accounts

  2. You entered the wrong tax amount on your accounts for a previous year and thats why you are getting a tax refund.
    So that previous years balance sheet showed less retained profit for NC 3101
    Action:
    The tax refund should be tagged directly to the Retained Profit & Undistributed Reserves NC3101
    That will correct the error and not effect the current years tax on the Profit and loss (Corporation Tax Charge for the Year NC8500)