Witholding Tax

Witholding Tax

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Another question re SAGE.

We receive a lot of payments from clients with 20% WHT deducted. How do I account for this in SAGE? I asked the helpline and they suggested posting what we receive against the clients account, which I have been doing, and then creating a credit note for the WHT and then posting the WHT into capital reserves. I just wanted to make sure if I have this right before I do it as SAGE is so hard to change. 

Thanks.

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By Craigie_Bhoy
20th Jun 2012 12:08

assuming its WHT that can be reclaimed, I would post the credit note to the Corporation Tax liability code (2 something).

WHT can usually be reclaimed against any CT due to HMRC and posting here (although intially showing a debit balance) will end up reflecting the actual amount of CT to be paid.

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