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Chart of Nominal Accounts - Code for HMRC - paying tax


#1

I’m new to this and stressing me out! for years been booking keeping on spreadsheets.

I need a code for HMCX tax bill.

Anyone got a code please.


#2

Its all listed under chart of accounts


#3

yes I’ve found this but not sure on which code to use for tax as I can’t find it…do you know please :wink:


#4

what sort of tax are you trying to pay?


#5

Its a Tax invoice NOT VAT…


#6

2320 Corporation Tax

2210 P.A.Y.E.

and if it is personal tax then thats drawings


#7

soletrader where did you fine 2310?? cause my list not showing this code :roll_eyes:


#8

Hi many thanks ive created a new code, I’m presuming that’s what you did?


#9

What sort of tax was it though?


#10

corporation tax - i couldn’t find on the list


#11

Have you set your QF account up as a limited company? Mine is set up (incorrectly) as a sole trader and I don’t have a nominal for corporation tax. The suggested 2310 is Hire Purchase.


#12

You mention sole trader above, does this mean you are a sole trader? Sole traders don’t pay corporation tax.


#13

If you’re a sole trader then your personal self assessment bill isn’t a business expense, it’s a personal expense, and as such if you used business money to pay it then you have to treat the transaction as drawings (taking money out of the business for personal use).


#14

it was the January tax bill on account any idea what code or what category it should go under. my husband is his name and trading as a sole trader


#15

Hi @Claireabell

As it was personal tax (even on sole trader earnings), you would need to tag this as drawings as it’s not an allowable business expense.

Rather than creating it as an invoice, you would simply tag the bank transaction as a transfer to the Proprietor’s Drawings Account for the time being.


#16

ok ive deleted the invoice and don on a bank transaction, but why for the time being ???


#17

At year end you will need to move the transactions to a different nominal through a journal. There’s more details (and the process) here: Sole trader drawings on P&L

The other option would be to tag it as “Something else not on the list” and tag it directly to nominal 3100 which is the drawings nominal. It’s essentially what you’d do at year end with the journal, but by using a bank account throughout the year (which is what the drawings account is essentially), you can track what the business owes you and what you owe it.

It’s however you want to work it - I know of users who use both methods without issues on QuickFile.


split this topic #18

3 posts were merged into an existing topic: Credit card statement , how to enter on quick file


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