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which account type should our income tax refund (overpayment) be allocated to?

Question asked by gary wyatt-williams 6 months ago

hi can some one help with which account type i should allocate our income tax refund (overpayment) too. ive tried creating a new account type but we still need to allocate it to an account type?

many thanks

5 Replies

Hi Gary,

No problem and yes, that is perfectly fine. In relation to the VAT refund, this should be coded to the VAT control account.

Tommy

Hi Gary,

In this case, you will need to create an account code for this by heading to Settings > Accounting > Account Codes > Create Account Code. Name this income tax and in the Account Type, I would choose Other Creditors under Current Liabilities.

Tommy

thank u tommy that is great, we have also entered it as money in and explained it as a refund, is this correct? we also had a vat refund, which we have entered the same way explaining it as a refund but we allocated this one to vat cash control, is this correct?

Hi Gary,

No problem and yes, that is perfectly fine. In relation to the VAT refund, this should be coded to the VAT control account.

Tommy

No problem, glad I could help!

Tommy

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