Nominal Tagging self assessment

Accounting
1

Why does your self assessment payment have to be tagged to drawings nominal code and not the nominal code of CORPORATION TAX? please don’t judge me as I’m self taught and not an accountant…just learning as I go along. Thanks

2

Bcaz sa payments are not CT and they are drawings

1 Like
3

Hi,
Corporation tax means Corporation tax is paid by UK limited companies and some other organisations. It is based on the annual profits that a company makes.
Self assessment is mainly for self-employed people (sole traders) and your income tax liability is your private liability and considered a drawing (private use)

Hope this helps

4 Likes
4

Correct corporation tax is a liability of the company and so is included in the company’s annual accounts.
Self-assessment income tax is a liability of you as an individual, not of the business. It isn’t based solely on your self-employed profits, but will take into account any other income which you earn or receive outside of your self-employment. It is therefore drawings as you have to pay it personally.

1 Like
5

Succinct explanation

1 Like
6

This topic was automatically closed 14 days after the last reply. New replies are no longer allowed.