New to this, so excuse me if I am asking a stupid question… I have created a journal detailing the introduction of £3500 worth of assets from Directors Loan Account (Under nominal 0030). Because of allowances I believe I get a reduction in Taxable profits because of this. Will this be included automatically when I run the Tax Summary report as I can’t see it or should I add nominal 0030 into the deductions section?
I’m not able to comment on whether the reduction in profits is correct or not (I’m not an accountant), in the same way I can’t confirm (or deny) that adding 0030 to deductions is correct. There are however, accountants using the forum who may be able to help, or you could ask an accountant through the QuickFile dashboard (click the ‘Need help with your accounting?’ option on the dashboard).
Perhaps the best way to record the assets would be through a purchase invoice rather than a journal, where you can also add any documents to back it up (e.g. receipts), and you can then tag these as paid from the DLA.
It should be noted that the tax report on QuickFile is just for guidance and doesn’t take everything into account. In some cases, there may be things not be added to the system which QuickFile obviously can’t take into account. There are other reports that should be used for reporting to HMRC, such as the profit and loss, and balance sheet.
I hope that helps