HMRC Self Assessments payments

Accounting
1

I pay my personal SA payments to HMRC from my business current account. Is that wrong? How should I tags these payments?

2

That will be drawings

3

Thanks FK. Do I assign my NI payments to Drawings also?

4

yes it is drawings too

5

Hi FK, Got it, thanks!

6

No way. You should pay your income tax from your personal account not your business account … or are you using QuickTime for personal accounts?

7

If you’re a sole trader or partnership there’s no reason why you can’t pay your SA bill with money in the business bank account, as it’s still your money. It’s not a business expense so the transaction would be tagged as a transfer to drawings, which doesn’t show in profit and loss - you’re drawing money out of the business for personal use (the personal use just happens to be to give it to HMRC to pay your tax bill).

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