Skip to main content
C
Chr5
May 31, 2022
Solved

Corporation Tax Contra PAYE

  • May 31, 2022
  • 1 reply
  • 0 views

Hello,

I have received a refund from HMRC relating to an overpayment of Corporation Tax.

However in the letter received it stated that a partial payment of this would be offset against outstanding PAYE.

The payment has been issued and I have received the balance payment into the bank. However I have am yet to process this all into QB as am unsure of how to capture all this information without complication.

Any assistance in how to process this all through QB would be appreciated. 

Best answer by paul72

Hi @Chr5 

 

It's unusual for CT & PAYE to be offset against one another - they're usually kept separate.

 

The easiest way is probably to use a dummy bank account (in QBO) as an intermediate step.

Pay PAYE from this dummy account to HMRC

Receive the refund into the dummy account

Transfer the balance from the dummy account to the main account in QBO (leaving the dummy account with £nil balance)

 

Hope this helps.

1 reply

paul72
paul72Answer
May 31, 2022

Hi @Chr5 

 

It's unusual for CT & PAYE to be offset against one another - they're usually kept separate.

 

The easiest way is probably to use a dummy bank account (in QBO) as an intermediate step.

Pay PAYE from this dummy account to HMRC

Receive the refund into the dummy account

Transfer the balance from the dummy account to the main account in QBO (leaving the dummy account with £nil balance)

 

Hope this helps.

C
Chr5Author
June 7, 2022

Thank you! That worked exactly as needed. 

 

T
Tax Care Accountants
November 7, 2022

You can create a bank account on COA and then use contra entry. Tax Care Accountant  

Terms & ConditionsAccessibility statement