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

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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.

Comments

  • Assuming you're a sole trader, you need to put it to drawings :)
    Despite the name, I'm actually a laydee!
  • ukbill69
    ukbill69 Posts: 2,790 Forumite
    Part of the Furniture 1,000 Posts Photogenic Combo Breaker
    If you dont know then put it under tax. Not bank as its not a bank charge.
    Kind Regards
    Bill
  • fengirl_2
    fengirl_2 Posts: 4,530 Forumite
    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:
  • 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
    BlondBoy Posts: 186 Forumite
    Part of the Furniture 100 Posts Name Dropper
    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.
  • Thanks BlondBoy! The penny's dropped!
    Once again I'm getting confused with profits and drawings.
    Thanks to everyone for the answers.
  • martindow
    martindow Posts: 10,569 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    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.
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