Where should I put last years tax return payment in books?

WOODWOOD

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.

NiceGuyEddie_2

Assuming you're a sole trader, you need to put it to drawings

ukbill69

If you dont know then put it under tax. Not bank as its not a bank charge.

fengirl_2

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.

WOODWOOD

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?

BlondBoy

WOODWOOD wrote: »

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.

WOODWOOD

Thanks BlondBoy! The penny's dropped!
Once again I'm getting confused with profits and drawings.
Thanks to everyone for the answers.

martindow

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.