I am a sole trader working part-time.
So I have one account into which clients pay their invoices. I do also take drawings from this account.
When a payment is received I deduct 20% and transfer it to a separate bank account (Savings) and this then sits there until my end-of-year tax is calculated. I then pay that year’s tax from that account.
So my question is should I have the Tax money bank account feed showing in Quickfile or not?
Thank you in anticipation.
Hi,
if you use the bank feed for your current account then I wouldn’t use the feed for the reserve account (if solely used to save to pay your income tax).
Instead you can create a auto-tag-rule which creates the entry in your reserve account automatically when the transaction is brought in via your current account bank feed.
When you pay your income tax to hmrc just remember to tag the income tax payment as drawings.
Hope this helps
@rhc Thank you for your quick and user-friendly advice. Cheers pal
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