How to do I account for a refund from HMRC (in the tax year 2019-20) for a penalty that was levied incorrectly in 2018-19?
How did you record the original penalty?
As a simple transfer to Proprietor Drawings Account as the levy was not paid from my business account
Then you have your answer. It’s tagged once again to the proprietors drawings.
Thanks for confirming Paul.
That was my initial thought. I was unsure whether it needed to be processed differently as being HMRC.
Many thanks for your help.