How Do I Input a Transaction for Corporation Tax Refunds

This article explains how to input a transaction for Corporation Tax Refunds

Every company which is liable to corporation tax should fill out the Company Tax Return for each accounting period even if you don't owe any corporation tax or are due a refund. If you are due a refund you can choose how this is repaid; either straight away or this can be carried forward to the next accounting year.

If you have received a Corporation Tax refund relating to a previous year, you will follow the below steps:

You would process the actual rebate payment as a negative amount in currentaccount.xls (payments section)

If the Rebate related to a previous years taxation, to make this balance with your corporation tax liability you'll have to make the same adjustment to the corporation tax liability section in financialaccounts > openaccounts.

For example -

  • Lets say in your 2011-12 you had a £3000 tax liability and had already paid £2000 towards this before the 2012-13 year started. 
  • Open accounts would show the £1000 liability.
  • If later for whatever reason there recalculation and the 2011-12 liability was reduced from £3000 to £500:
  • You would be due £1500 back which would be entered in currentaccount > payments (as a negative)
  • You would adjust the financialaccounts > open accounts to have a tax liability of -£1500
  • Any remaining corporation tax liability would be only from current the 2011-12 year.

 

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