VT Transaction+ does not directly calculate the tax due by a business, but clearly can provide the numbers, such as profit for the year, that are used to compute the liability.
Income Tax
Income tax on the profits of an unincorporated business (for example, a sole trader or partnership) is normally left out of the accounts of the business, since the individuals are taxed directly through their personal taxation.
If you on self-assessment
This is relevant for taxpayers who do not come under the Making Tax Digital for Income Tax requirements.
The profit and loss account and balance sheet for unincorporated businesses can be sent to the following tax packages from VT Transaction+:
To send data, select Tax Data > Send To Tax Package.
Data is sent via the Clipboard (like copy and paste) in an agreed format called Standard Name Format (SNF).
If tax is paid out of a business bank account, the payment should be analysed to the Capital account: Drawings account.
If you come under Making Tax Digital for Income Tax requirements
Please see Final declaration.
Corporation Tax
For companies, corporation tax due on profits should be entered on a journal as follows (JRN button on the main toolbar):
Screenshot of a section of the Journal dialog
When corporation tax is then paid, enter a payment transaction (PAY), selecting the Creditors: Corporation tax account as the analysis account.
