Accounting for refund of withholding tax?

[Bumbling Amateur]

My company was paid for work in Taiwan minus 20% withholding tax in 2020. In 2022 following my retrospective application for a reduction in withholding tax the amount was revised to 3% and my company was given a refund. How should I account for this?

 

[DWS]

How was the tax withheld accounted for at the time?

 

[Daybooks]

Generally the amount withheld would have been credited to turnover and debited to a nominal cost account or if recoverable (against UK taxes) then to a balance sheet asset account. If this wasn’t done then credit the income received to turnover. Consider whether the remaining withheld amount is recoverable (against UK taxes) and treat as described.

 

[Bumbling Amateur]

How was the tax withheld accounted for at the time?

the amount was debited to an expenses account

 

[Bumbling Amateur]

Generally the amount withheld would have been credited to turnover and debited to a nominal cost account or if recoverable (against UK taxes) then to a balance sheet asset account. If this wasn’t done then credit the income received to turnover. Consider whether the remaining withheld amount is recoverable (against UK taxes) and treat as described.

A balance sheet asset account was not created so I'll credit the income received to turnover. I don't suppose any recovery of taxes is possible in this case. Thanks for very clear advice.