Hi,
Please can you help me. I am a bit confused as to how I should do the following. I recently paid my company's due Corporation Tax from my own personal bank account.
a) How should I record the payment from myself to my good friends at HMRC
b) How should I record the reimbursement from my company back to myself.
This would not normally give me a problemusing the Directors Loan account, but it is the relationship to the Corporation Tax account and the Tax Expense account that are confusing me.
Hi Andrew,
Here's what you need to do:
1. Create a General Transaction from the 'Corporation Tax Liability' account to the 'Tax Expense' account dated on the last day of the financial year.
2. When you pay the tax man record a General Transaction from 'Directors Loan Account' to 'Corporation Tax Liability'
3. When the company reimburses you record a General Transaction from the 'Cheque Account' to the 'Directors Loan Account'
Cheers,
