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Corporation tax showing as asset

can someone tell me y payments made to Corporation Tax are still showing as in asset in my balance sheet…

Hi @flauntys

While I’m not an accountant and can’t help with individual accounting queries, I can hopefully point you in the right direction.

There’s a previous post on corporation tax here, which explains how a journal should be created and it’s effects.

From reading your post, I believe the journal should correct your issue. However, as I mentioned, it may be best to run your circumstances past an accountant to be sure.

Hope that helps

Ok thank you. Just seems strange how corporation tax iv paid out is still showing as an asset. Can’t be an asset if iv paid it…

It would only be an asset if HMRC owes you a CT refund.

I suspect you’ve only tagged the CT payments from your bank without doing any year end adjustment journals to balance things off. As part of the year end process you would normally journal the CT liability from your P&L to the balance sheet.

DR: Corporation Tax Charge for the Year (8500)
CR: Corporation Tax (2320)

Thank you I’ll have a go see if that sorts things out…