Hello,
I am a sole trader, last TAX year produced a total amount of lets say £500
£ 350 is Class 4 NICS
£ 150 is an Income Tax
While I know and can find the proper allocation for the NICS (Which is: National Insurance (2211) )
But I have no idea which one to allocate for the Income Tax ?
As you’re a sole trader, the tax isn’t actually an allowable expense. You should tag the transactions as a transfer to the drawings account, as if you’re personally taking money out of the business.