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I need help with a corporation tax query on Sage

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Hi.  I am a bookkeeper and currently looking at the corporation tax liability from the accountants year end journal on Sage versus what is actually owed to HMRC from the CT return.  They differ slightly.  What journal should I post on Sage in order that the nominal matches what is actually due so that when the payments are posted, the nominal clears to zero?

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By Wanderer
07th Aug 2019 10:44

Well, why do they differ and by how much?

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By [email protected]
07th Aug 2019 11:26

Hi. By only about £240.00. I am guessing that when they actually did the return it calculated slightly different to what they had accounted for in the accounts. I have asked the question but the accountant in question has apparently left the company and I'm waiting for someone else to get back to me. I was hoping to just resolve myself.

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Caroline
By accountantccole
07th Aug 2019 11:08

Ask the accountant?

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By johngroganjga
07th Aug 2019 12:32

You need to post the figure given to you by the accountant, or else your opening TB will not agree with last year's accounts. The balance the CT liability account, if there is one, after the payment is made will be for the accountant to deal with in the next accounts.

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By kiwilondon99
07th Aug 2019 13:43

have you posted 'something' in sage 'post accounts ' into the wrong year? or reconciled the ye ledger account...

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By [email protected]
07th Aug 2019 13:58

No, the nominal liability on Sage is currently as per the accountants year end opening balances. But the amount they have submitted on the actual CT return to HMRC differs to the amount on the year end journal . I wanted the nominal to reflect the amount that HMRC are expecting from the CT return.

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By SXGuy
07th Aug 2019 15:20

I'd hazard a guess and say there were perhaps some capital allowances which reduced the actual tax due post accounts. So what you should have is corporation tax charge for the year on the p and l side and actual tax due on balance sheet liability. With the difference being somewhere in sure you can work out.

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By landscaper
07th Aug 2019 16:54

Post the amount that was accrued/bfwd from last year against that code in the BS so it then becomes nil in effect and the difference of £240 goes in this year's P&L as CT paid with note that it relates to last year

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