I think I already know the answer to this question, but just want to be sure. If I have a business account on QF that I use for business transactions, would it be better to pay my income tax from that account and then tag it to Proprietor Drawings, or simply use my own personal bank account that is nothing to do with QF, so avoiding the need to worry about anything.
It makes sense to pay tax with my personal account since it is a personal payment from me to HMRC and not a business transaction. Could someone with the appropriate knowledge on this please confirm this for me, thanks.
Either account would be fine. As you rightfully say, it would need to be tagged as drawings should it be paid from the business account as it’s not an allowable expense. Whereas with a personal account, you just pay it and that’s it.
Basically, if you pay with your personal account, you’re saving yourself creating and tagging the entry, but apart from that, there’s no difference