Paying corporation tax in the system accounts
Overview
There is no specific area in KCC for corporation tax however it is possible to reflect the payment of corporation tax on the system accounts.
Usage
The process of doing this is the same as it were a utility bill or other expense on the SP Ledger.
Create the Tax Bill
- Create HMRC as a supplier on your system if needed.
- The video here details how to do this, How to Create a New Company.
- Go to [Accounts | Sales and Purchase Ledger].
- Click Edit followed by +New.
- In the popup double click HMRC (or whatever company represents the supplier of your Corporation Tax).
- Select the nominal account to be used for this expense.
- If you require a new nominal account this can be created by following the guide here, How to Create a New Nominal Account.
- Set the date as required.
- Set the amounts and tax rate (if any).
- We would recommend you also enter a description for this entry.
- Click Save Screen.
Paying the Tax Bill
WARNING: This process should NOT be carried out if integrated with an accounting package.
- Open the HMRC company record (or whatever company you used in the SP Ledger for your Corporation Tax).
- Select the Statement tab.
- Click Actions and select New Payment.
- In the popup enter the payment details.
- In the top right hand grid, green select the payment entered in step 3.
- In the lower right hand grid, green select the SP Ledger invoice created above.
- Click Actions and select Allocate Payment(s) / Credit(s) to Invoice(s).
- Confirm the popup.