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Where should I put last years tax return payment in books?
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WOODWOOD
Posts: 15 Forumite
Hi all,
Another tax return question!
In my books/tax return for this year, where should I put last years tax payment that I made after I'd filled my tax return.
I was going to put it under bank charges but I don't think that's right.
Thanks for any ideas.
Wood.
Another tax return question!
In my books/tax return for this year, where should I put last years tax payment that I made after I'd filled my tax return.
I was going to put it under bank charges but I don't think that's right.
Thanks for any ideas.
Wood.
0
Comments
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Assuming you're a sole trader, you need to put it to drawingsDespite the name, I'm actually a laydee!0
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If you dont know then put it under tax. Not bank as its not a bank charge.Kind Regards
Bill0 -
If you are a sole trader, its a personal expense and goes under drawings.
If you are a limited company, then it goes under corporation tax.£705,000 raised by client groups in the past 18 mths :beer:0 -
Thanks for the replies.
Yes I'm a sole trader.
I had thought of putting it under drawings but I thought that I would get taxed on it again as it looks like I'm paying myself that amount?0 -
Thanks for the replies.
Yes I'm a sole trader.
I had thought of putting it under drawings but I thought that I would get taxed on it again as it looks like I'm paying myself that amount?
It doesn't matter. As a sole trader, you're taxed on your profits - not your drawings. The profit's the same, whether you draw it and spend it on a holiday or something or simply settle your tax bill with it.
No danger of being double taxed, in other words.0 -
Thanks BlondBoy! The penny's dropped!
Once again I'm getting confused with profits and drawings.
Thanks to everyone for the answers.0 -
Are you trying to enter your tax bill as an expense on the business? As a sole trader this is a personal bill so it can't be used to reduce your profits and thus future tax. As has been said, if you have paid it from your business account it is a drawing.0
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