Solution Properties
Solution ID:
260810141848640
Last Modified Date:
Mon Aug 10 14:44:33 UTC 2026
Taxonomy Path:
Case category//How do I...//governmental/legislative compliance
Author:
[email protected]
Pay Corporation tax to HMRC
Description

If your business is a limited company, and you make a taxable profit, you need to pay corporation tax to HMRC. The amount you pay and when you pay it depends on how much profit you make and when you make it.

NOTE:

Before you make your payment to HMRC, you must record your corporation tax liability.

Cause
Resolution

Record your payment of Corporation tax

  1. Go to Banking, then open the bank account you want to make the payment from.
  2. Select New Entry then Purchase / Payment. Choose the Other Payment tab.
  3. In the Date Paid box, enter the date you paid HMRC.
  4. In the Amount Paid box, enter the amount you paid to HMRC.
  5. Enter the amount you paid to HMRC.
  6. On the Ledger Account list, choose Corporation Tax Liability.
  7. Set the VAT Rate to No VAT.
  8. In the Total box, enter the amount you paid to HMRC.
  9. Select Save.

NOTE:

The payment clears your corporation tax liability. This now appears as zero on your balance sheet. The corporation tax still appears as a debit on the balance sheet in the equity section. If you need to, follow our article to move the corporation tax to the profit and loss nominal account.

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