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Tax Liability account

Hi,
Which account should tax paid be allocated to?
Should it go under account group 'Tax Liabilities' or should there be an 'expense' account for taxes paid?
This is assuming taxes are not entered as 'payable' (i.e. invoiced by HMRC) in first place.
thanks, HB


Posted by Hanna Branca on Mar 12, 2012 10:32 AM GMT

Hi Hanna,

If the tax charge relates to your current period and your business is a limited company then you can allocate the payment to the 'Tax Expense' account. See this page for our recommended way to handle corporation tax:
http://www.solaraccounts.co.uk/help/how-to-record-an-annual-tax-liability.php

Regards,


Posted by Mark McLaren (Solar Accounts) on Mar 12, 2012 12:51 PM GMT