1) Year-end tax accrual

The system produced IFA Report (RegData) has within it a Corporation Tax accrual.  This adjustment is internal to the report only and is not made in the books of account.  The adjustment reduces retained profits and increases current liabilities in the Gabriel report.

To ensure the tax charge is not duplicated please do not adjust the books to include a tax accrual prior to running the Gabriel.  Once the IFA report has been run and filed it with the FCA, the tax accrual can be recorded in the books by making an adjustment as follows;

        Dr.    Profit & Loss – Corporation tax Charge
        Cr.    Current Liabilities – Corporation Tax 


2) Corporation tax payments

Once the year's tax provision has been made per 1) above, payments should be set against the Current Liability – Corporation Tax and not against the Profit & Loss Expense.  The Profit & Loss Expense heading was used in 1) above to record the tax charge in the prior period, the period to which the charge related. 

To apply the Corporation Tax payment to the Current Liability – Corporation Tax;

• Click Expenses
• Click Record Expenses
• Record an Expense as normal BUT select the Current Liability – Corporation Tax from the drop down list.  NOTE: The Balance Sheet headings appear on the drop down list after the Expense headings