I’m a Ltd and I receive invoice payments (royalties) from a client in Italy, to my UK bank account. They deduct 8% “withholding tax” from every payment on invoice I send them. Later that withholding tax can be cancelled out against corporation tax due. Would you know how to account for this in QF? I migrated from Wave, there I could create a payment and assign it to a withholding tax account (rather than as income to a bank account) and also tag it against the invoice which would then show as fully paid.
I don’t see this option in QF, please help!
Hi,
You could create a holding bank account in your bank accounts section in quickfile. And then do the same, tag the transaction to whatever you want, like you did in wave.
Hope this helps
Yes, you can use reserve account, but you can also use other types of bank accounts. The only difference is in what section you will see that account in quickfile.
But don’t want to confuse you Reserve account sounds perfectly fine.