How to account for Corporation tax rebate

Question asked by Pete 8 years ago

I just received a repayment from HMRC on corporation tax (overpaid) paid a couple of years ago. I may no longer have that accountant and currently don't have another one yet, so I'm hoping someone here can help me with how to account for this in clearbooks.

EDIT: The payment was actually made to the accountant, who then paid me so the money has come from his client account into my account,

The tax payment for that year was made before I started with Clearbooks which was this year (from April 2016) so I'd like to now how I explain the payment that just came into my bank account from the accountant.

Can anyone help please?

Many thanks.

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7 Replies

Hi Pete

It depends if there's a brought forward balance in one of the balance sheet accounts for the refund. In other words if you brought balances into the accounts from the last set of accounts prepared the accountant may have already accounted for the refund and so it would be shown as a "debtor" in one of the account codes.

If not then just put it to the Corporation tax account in the PL section (default code = 6501001).

Best answer
8 years ago

"If not then just put it to the Corporation tax account in the PL section (default code = 6501001)."

Ok thanks I'll try that. presumably I have to make that account show in sales as well as purchases.

8 years ago

Many thanks for the answers.

As the transfer came from the accountant, do I make the "customer" the accountant who paid me or HMRC, when I explain the payement

8 years ago

It's HMRC, they are who paid the money.

Chances are you already have HMRC as a supplier and so edit their details and, on the "Preset information" page change them to "A customer & supplier" this saves having to set them up again.

8 years ago

Yrs, I have HMRC, but currently there are two: HMRC VAT and HMRC PAYE. (I think that was done on advice of my previous accoontant) . Should I set up another customer/supplier for HMRC Corporation tax?

Thanks

8 years ago

Good thinking, yes that's probably best. Some people have one HMRC contact for the lot but others like to split them up. No right/wrong method.

8 years ago

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