How to add Corporation Tax line

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Tax payable is an automatically created liability account that appears on the balance sheet when you use a tax code. See the Guide:

Setting up tax codes

Tax codes are available under the Settings tab to track obligations for sales tax, goods and services tax, value added tax and other taxes imposed by a country or regional tax authority. [image] When you are using tax codes, you will be able to select a tax code for each transaction line. For example, if you receive 1,100 which includes 10% tax, it can be recorded as follows. [image] Similarly, if you spend 550 which includes 10% tax, it will be recorded like this: [image] By using tax cod…

But Tax payable does not relate to taxes on income, since so many things can affect that. It records the liability a company has for taxes, such as VAT or sales tax, collected by the business on behalf of the tax authority. Such tax will eventually be remitted to the tax authority.

If, by “corporation tax,” you mean a tax on corporate income, you should create an expense account in the chart of accounts. See the Guide:

Set up chart of accounts

When setting up a new accounting system, usually you start with the Chart of accounts. But what is the Chart of Accounts? Definition on the Internet says: The chart of accounts is a listing of all accounts used in the general ledger of an organization. What does this even mean? Well, let’s look at a sample balance sheet which is a key financial statement that will be required for your business: [image] A balance sheet is a report of the assets and liabilities of a business. Every asset o…

Manager is not tax software, so it will not figure how much tax you owe on income. But to record tax paid, Spend money from a cash account and post the transaction to the expense account you created for that purpose.