Paying Corporation Tax to HMRC
Select the component, either by clicking on the Transfer Transactions icon, or by choosing General > Transfer Transactions from the main menu.
There are four fields which MUST be completed for the transaction itself to be considered complete by the software: Tax Date, From Account, To Account and Total Amount. There are further fields which can be filled in to embellish the transaction with extra information, such as Supplier, Reference.
Next, click the Create a new transaction button in the top toolbar. This adds a new transaction line to the table.
Enter the date in the Tax Date field. As you start typing, a pop-up calendar will appear. You can either click on the required date, or type it in manually. The software will recognise most date dividers, such as full stops, slashes, etc.
The From account will be the account being used to pay HMRC (eg. Bank, Cash or Credit Card) the To account will be Corporation Tax.
If you do not have a Corporation Tax Account set up. Do this:
- Open the Chart of Accounts component
- Double-click the Equity Group > Profit and Loss Group in the left hand panel. This will open it in the right hand panel.
- Select the Sub-accounts tab at the bottom of the right panel
- Click the Add new account button in the toolbar in that panel
- Enter a name for the account (eg. Corporation Tax) and set the account type as Tax Account
Note you could set up a Tax Group if you preferred and then open a Corporation Tax Account in that group.