how to deal with PSWT (professional services witholding tax)

popstar · Post by **popstar** » 02 Dec 2008, 16:25

hi all,
A customer of mine recently settled an invoice and deducted PSWT.
His account still shows this as a debit as I do not know how to allocate it elsewhere. Can anyone help?

Many thanks

Post by **brucedenney** » 03 Dec 2008, 10:55

do a credit note back to the balance sheet

popstar · Post by **popstar** » 03 Dec 2008, 12:56

thank you bruce for taking the time to help. I wonder if you could tell me how I can actually do this? I have tried (in the demo data) to post a credit note but I dont know which N/C tp post it to.
thanks again,
Suzanne

Post by **brucedenney** » 03 Dec 2008, 13:59

You need to create a nominal code for the Tax that has been deducted on behalf of the tax man by the customer, this is offset against your tax liability at year end, I guess you could use the Tax liability account, however, I would create one specifically for the job and keep things neat. wants to be somewhere in the 221x region next to your Tax Liability account.

I guess as this is going to be an asset there is a good case for it not being in the liabilities area, but as I would offset against the tax liability, it makes sense to me to role the two together and have them next to each other.

If this was going to happen all the time, I might take a different view, but if it is only occasionally...

popstar · Post by **popstar** » 03 Dec 2008, 14:11

Many thanks Bruce, very much appreciated!

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how to deal with PSWT (professional services witholding tax)

how to deal with PSWT (professional services witholding tax)

thanks

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