M
DownloadReleasesGuidesChatbotAccountantsForumCloud Edition

Tax Code — Edit

Configuring a tax code in Manager.io is essential for accurate tax calculation and reporting. This guide will take you step-by-step through all available options when editing a tax code.

1. Name

  • What to do: Type the name of the tax code in the Name field.
  • Where it appears: This name is used internally and will also display in dropdown menus and on printed documents.

2. Label (Optional)

  • Purpose: Enter an alternative display name in the Label field if you want a different name to appear on printed documents (e.g., invoices, receipts).
  • Tip: If you want the same name visible to users and customers, leave this field blank. The system will use the Name instead.

3. Tax Rate

Select the appropriate tax rate for your code using the Tax rate dropdown:

Options:

  • Zero (0%)
    • Set at 0% tax.
    • Requires no tax account or additional configuration.
  • Pass-through (100%)
    • Allocates 100% of the transaction amount to a tax account.
    • Typically used for importing, where the full transaction amount represents the taxable value for later tax assessment by authorities.
  • Custom %
    • Lets you define a specific percentage rate (e.g., 5%, 7.5%).
    • You must select whether this is a single rate or has multiple components (see “Type” below).

4. Type

When Custom % is selected, the Type dropdown becomes available:

  • Single rate
    • Enter a single percentage in the Rate field for your tax code.
  • Multiple rates
    • Define two or more tax components, each with its own name and percentage. This is useful for taxes split between, for example, national and local authorities.

5. Account

  • When Required:
    For Pass-through (100%) and Custom % tax codes, you must select an Account.
  • By default:
    The system assigns a placeholder account called “Tax payable.”
  • Best practice:
    Create your own specific tax account in the Chart of Accounts (such as "VAT Payable" or "GST Payable"). Then select that account in the Account field when you edit your tax code.
  • Note:
    The default placeholder account cannot be used to pay tax or claim refunds during actual transactions, so linking your tax code to a personalized account is necessary for complete and accurate bookkeeping.

By understanding and correctly setting each of these fields, you’ll ensure your tax codes in Manager.io are robust, accurate, and optimized for your business reporting needs.