Steps to take if you don’t have an accountant
- Calculate the tax amount to pay
- Create a bill with the amount to pay dated end of tax year 1 and categorised as ‘Tax cost’
- Pay the tax and categorise the payment as ‘Tax liability’
- Match the bill you created to the tax payment
Steps to take if you have an accountant who has access to your data
- Your accountant calculates the tax amount to pay
- Your accountant creates a journal dated end of the tax year to:
- Debit Tax cost
- Credit Tax liability
- You pay the tax and categorise the payment as ‘Tax liability’