No if I have credit card for example I have added 200 as an expense s cogs then I wants to keep balance update on QuickFile I mark all personal transactions as drawings am I missing something’s thanks
I don’t understand your last posting at all, I’m afraid. Maybe you can explain thinsg again? As I mentioned earlier, all non-business related costs must be tagged/classified as drawings and that is below the net profit line. Do you have a business current account?
Hi no business account I just been putting personal transactions as drawings.
For example I have a credit card and I wanted the balance to match on QuickFile I spent 800£ on purchase for cost of goods rest are personal purchase which are marked as drawings.
As I understand as long as I provide a profit and loss the drawings don’t matter
Correct, and as per my earlier response. The profit before tax (or taxable income) is the key line in the p&l a/c. You have a personal allowance this tax year 2016/17 of £11,000 before you are liable to income tax. Be aware of Class 2 and Class 4 National insurance also.
Thanks your been very helpful in clearing my points up. Put my mind at ease.