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Corporation tax losses

taylor1050taylor1050 Registered Posts: 2
I have losses brought forward from the previous year 2014/15, i'm a little confused as to how to account for these this year 2015/16. I not sure my previous colleague accounted for it correctly at 2014/15. I wish to use the losses b/fwd to reduce the corporation tax figure for 2015/16.

Will my balance sheet code and profit & loss code show the same figures, or will the balance sheet reflect the loss relief carried forward.

Comments

  • RyanMIPRyanMIP LincolnshireRegistered Posts: 50
    If you want to "use the losses b/fwd to reduce the corporation tax figure for 2015/16" I would suggest you:

    Debit the Corporation Tax creditor account; and
    Credit the loss brought forward account.

    You may also wish to:

    Debit the "profit & loss code"; and
    Credit the current year Corporation Tax charge in the P&L.
    mrme89
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