Im no accountant - self taught on quick file - but I’m paying my self assessment for tax and wanting to know what nominal do you tag? is it proprietors drawings. (my books do go to an accountant every year).
What I can’t work out as when you take a drawing each week from the business and tag to proprietors drawings - surely when you also tag this payment to HMRC self assessment it looks like you have even more earnings…just want to understand how it works. thanks
As a sole trader, your self assessment tax isn’t an allowable business expense, so tagging it to the drawings account would be correct.
It doesn’t affect your profit figures which would generally be the ones HMRC are interested in.
That said, I’m not an accountant, so it may be best to double-check with one just to be safe and sure.
Correct , SA payments are drawings
Does that mean that CT for a private limited comapny is an allowable business expense?
No, CT is based on taxable profit
Thanks for the quick reply,
All is good then on that front
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