I am a sole trader and want to use the HMRC simplified accounting method for flat rate use of home and vehicle millage. From what I understand I have to use a Proprietor Drawings Account, however I don’t see one in the list of accounts I have setup. I would like to know if this is an account I have to manually set up myself and if so once set up how would I process these flat rate expenses? Would this account correctly affect my expenses if I tagged an invoice for it? Would I just create a supplier called “Flat Rate Expenses” or similar to create invoices with for the flat rate expenses.
I need some help with tis as i’m finding it rather confusing. Thanks.