From a previous year (before moving into Quickfile) I had a Corporation Tax liability which is being paid off monthly. As a result of losses from the previous two years, the amount of Corporation Tax outstanding has been reduced. How do I show this (the amount of reduction) in Quickfil?
Many thanks for any suggestions/advice here.
Hi,
After Corporation Tax has been calculated for the year, it is shown as a liability on the balance sheet and as the tax expense for the year on the Profit or Loss.
The normal entry in Quickfile for this would be:
If you need to reduce the amount of CT payable, you’ll make this journal:
Debiting the liability reduces it, and crediting the tax expense for the year reduces it too.
Hope this helps.
Darren, many thanks. Yes, that certainly helps.
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