Corporation Tax and Sage...

Discussion in 'Accounts & Finance' started by billyboy120, Mar 29, 2010.

  1. billyboy120

    billyboy120 UKBF Regular Free Member

    Posts: 56 Likes: 2
    Hi Guys,

    I'd be grateful if somebody could assist me with posting corporation tax as a liability and then a payment in sage instant accounts.

    I'm guessing I can't just do a bank payment on the corporation tax nominal 2320.

    Thanks in advance!

    Billy
    Posted: Mar 29, 2010 By: billyboy120 Member since: Oct 1, 2008
    #1
  2. Maslins

    Maslins UKBF Regular Free Member

    Posts: 805 Likes: 232
    When you pay the tax your suggestion will be correct...but first you'll need to journal the tax liability in there:

    Dr corporation tax expense (think it's around the 8000 mark)
    Cr corporation tax liability

    If you've got an accountant they'll typically tell you the journal to put through once they've calculated the liability.
    Posted: Mar 29, 2010 By: Maslins Member since: Feb 12, 2009
    #2
  3. billyboy120

    billyboy120 UKBF Regular Free Member

    Posts: 56 Likes: 2
    Thanks! There's no nominal in the ledger for corporation tax expenses, so i suppose i can just create one under generall expenses in sage.

    If i put it through as an expense like that does it mean that it counts as a cost ofset again this years tax??
    Posted: Mar 29, 2010 By: billyboy120 Member since: Oct 1, 2008
    #3
  4. elainec100@cheapaccounting

    elainec100@cheapaccounting UKBF Regular Full Member

    Posts: 13,271 Likes: 2,871
    No - you cannot set tax off as a cost against profit :rolleyes::):p
    Posted: Mar 29, 2010 By: elainec100@cheapaccounting Member since: Nov 4, 2005
    #4
  5. billyboy120

    billyboy120 UKBF Regular Free Member

    Posts: 56 Likes: 2
    hahahaha didn't think so thought I'd check though!! What i mean is that in my sage accounts this will appear as a general expense so when I run reports it will be deducted from any profits??
    Posted: Mar 29, 2010 By: billyboy120 Member since: Oct 1, 2008
    #5
  6. David A

    David A UKBF Contributor Free Member

    Posts: 522 Likes: 127
    We don't use Sage, but the package we have does use nominal codes similar to Sage.

    Been messing about, and the problem we have is that after putting the Dr corporation tax expense in any 8000 or 9000 code, it then appears as an expense in the PL report - which is obviously wrong.

    Anyone throw any light on how to account for the payment we have made?
    Posted: Mar 15, 2012 By: David A Member since: Mar 25, 2011
    #6