Once your Annual Accounts & Corporation Tax Return have been filed by your accountant, you will need to make the Corporation Tax payment to HMRC.
If you are unsure how to categorise that payment, this article should clarify things!
Which category to use?
Once the transaction appears in your Starling account you will need to categorise it. The correct option to use here is the "Corporation Tax Owed" category. It's important to use this category so that the payment nets off correctly against any outstanding liabilities in your Starling account and your financial records remain accurate.
Step by Step
1. Open the Starling App
Open the Starling app.
2. Access Transactions:
Navigate to the "Transactions" section within the app. This is where you can view and manage all your financial transactions.
3. Locate the Corporation Tax Payment:
Find the transaction corresponding to your corporation tax payment.
4. Categorise the Transaction:
Click on the transaction to open its details.
Click on the category option in the transaction details
Select "Corporation tax owed" from the list of available categories. This categorisation ensures that the payment is correctly attributed to your tax liability.
Once the transactions has been categorised and approved, the payment should now net off correctly against the corporation tax owed amount shown on the money owed report.
Remember to review and categorise your transactions regularly to keep your records up to date.