Lesson 6 of 8 · 3 min

The tax summary, and filing your return

Tax on sales by rate, tax on purchases, and the difference: the figures for your return, which you or your accountant file.

  1. Reports → Tax summary, for any dates (usually a month): at each rate, what you sold and bought before tax and the tax on each; then the tax on your sales less the tax on your purchases, which is what you owe the tax office for those dates (or get back).
  2. Ledger doesn't file tax returns, and the page says so: take these figures to your accountant, or file the sales tax return with FBR yourself, and pay what's due, checking the rates are still right. In the UK, The Clay Room's VAT return goes to HMRC through Making Tax Digital software. Ledger doesn't do either yet.
  3. There's no screen for paying the tax itself. Once it's paid, your accountant posts a journal (Accounts → Journals → New journal) that clears both tax accounts against the bank: what you charged comes off what you owe, what you paid on purchases is used up, and the bank pays the difference.

Try it

Opens Ledger. You'll be asked to sign in first; new businesses get a free week, no card needed.

Open the tax summary

Quick check

One quick question. Pick an answer and Leo will tell you how you did.

1. Does Ledger file your sales tax return with FBR?

Try it in Ledger, free for a week

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