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HAM9
November 4, 2020
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(Corporate) Tax Charge - Provision/Adjustment

  • November 4, 2020
  • 1 reply
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QBO Plus UK version. I have a question on Corporation Tax charge. If one wants to pass a provision for tax adjustment what sort of account does one create for the Corp Tax charge? It should be such that the P&L should show Net Profit before Tax and then Tax charge shown separately and then Net Profit after Tax. It must be in the conventional accounting presentation mode.

 

Currently it seems the above cannot be done cleanly. Close one can come up to is to park the Corp Tax A/c under Other Expenses. There should be a better way!

 

Help!

Best answer by emmam6

Hello Community Users, we just wanted to pop in and add an update regarding corporation tax and QuickBooks Online. There is now an option in workpapers in QuickBooks Online Accountant version to prepare and submit the corporation tax return (sometimes called CT600 form) We have included a help article on the how to steps here for any accountant users who would like more information.

Any questions please just ask them.

1 reply

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payment after leaving
November 4, 2020

Hi HAM9 QuickBooks doesn't directly support accounting for Corporation Tax and therefore, as we aren't accountants, we recommend that you qualify our suggestion below with an accountant.

You would have to calculate the amount of Corporation due, then create a journal to move the amount from the retained earnings to a liability account, you may have to set this, then when you pay the Corporation Tax you would create and expense and in the category column of the expense select the liability account that you used. This method will not show on the P&L due to the type of account, liability, being used.

E
emmam6Answer
June 15, 2023

Hello Community Users, we just wanted to pop in and add an update regarding corporation tax and QuickBooks Online. There is now an option in workpapers in QuickBooks Online Accountant version to prepare and submit the corporation tax return (sometimes called CT600 form) We have included a help article on the how to steps here for any accountant users who would like more information.

Any questions please just ask them.

    R
    Ruth Galgut
    January 26, 2025

    Hi

    I cannot use QuickBooks to file my CT600 as I have a foreign bank account.   I am looking forward to doing so in the future.

    However, even if I were able to use CT600, the query has not been resolved, as UK Corporation Tax should not be included in NET OPERATING INCOME - it should be lower down the Profit and Loss statement.  The layout should be

    NET OPERATING INCOME

    Total Other Income

    Total Other Expenses

    NET INCOME BEFORE TAXATION

    UK Corporation Tax

    NET INCOME AFTER TAXATION

    This will help readers and users of the profit and loss account if taxation is in its expected place

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