Solution Properties
Solution ID:
260810102802147
Last Modified Date:
Mon Aug 10 10:36:41 UTC 2026
Taxonomy Path:
Case category//How do I...//governmental/legislative compliance
Author:
[email protected]
Create Corporation Tax ledger accounts
Description

If your business is a limited company, and you make a taxable profit, you need to pay corporation tax to HMRC.

Create a nominal ledger account for your corporation tax liability, with a category of current liability. Also create a nominal ledger account for corporation tax in the equity category, to record a debit against this when you create the journal.

Cause
Resolution

Create your Corporation Tax ledger accounts

Create your Corporation Tax Liability account

  1. Go to Settings, then Business Settings then in the Financial Settings section, select Chart of Accounts.
  2. Select New Ledger Account, then complete the following information:
Ledger Name* Enter Corporation Tax Liability.
Display Name* Enter Corporation Tax Liability again.
Nominal Code* You can enter any nominal code here as it’s the category that determines where it appears on your balance sheet. If you want to use a number within the default liability range, enter a code that’s not already in use between 2000 and 2999.
Category Choose Current Liability.
Category Group This defaults to Liability and you can’t change this.
VAT Rate Choose No VAT.
Visibility This defaults to Other Payment and Other Receipt, you don’t need to select any additional options.
  1. Click Save.

Create your Corporation Tax account

  1. Go to Settings, then Business Settings then in the Financial Settings section, select Chart of Accounts.
  2. Select New Ledger Account, then complete the following information:
Ledger Name* Enter Corporation Tax.
Display Name* Enter Corporation Tax again.
Nominal Code* You can enter any nominal code here as it’s the category that determines where it appears on your balance sheet. If you want to use a number within the default equity range, enter a code that’s not already in use between 3000 and 3999.
Category Choose Equity.
Category Group This defaults to Capital and you can’t change this.
VAT Rate Choose No VAT.
Visibility This defaults to Other Payment and Other Receipt, you don’t need to select any additional options.
  1. Click Save.

You’ve now created the nominal ledger accounts and you’re ready to record your corporation tax liability to HMRC.

Steps to duplicate
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