Is payment of tax bill an expense 27 January at 10:09PM edited 27 January at 10:12PM in Cutting tax 8 replies 377 views

textbook

If I pay my tax bill, should I pay out of my business account?  Is it an expense?

Want to get payment across before Jan 31st as well, direct debit quick enough?

purdyoaten2

textbook said:

If I pay my tax bill, should I pay out of my business account?  Is it an expense?

Want to get payment across before Jan 31st as well, direct debit quick enough?

It is most definitely not an expense. You can use whatever bank account you wish. How to pay:

https://www.gov.uk/pay-self-assessment-tax-bill

textbook

purdyoaten2 said:

textbook said:

If I pay my tax bill, should I pay out of my business account?  Is it an expense?

Want to get payment across before Jan 31st as well, direct debit quick enough?

It is most definitely not an expense. You can use whatever bank account you wish. How to pay:

https://www.gov.uk/pay-self-assessment-tax-bill

thxs for all your help on everything.   Spoke to my brother and he said I'm overthinking it and just send it, most people don't even break down expenses, they do it as one figure and put all vehicle figures through whether they should or shouldn't.   All his receipts for years are in one box lol.   

purdyoaten2

textbook said:

purdyoaten2 said:

textbook said:

If I pay my tax bill, should I pay out of my business account?  Is it an expense?

Want to get payment across before Jan 31st as well, direct debit quick enough?

It is most definitely not an expense. You can use whatever bank account you wish. How to pay:

https://www.gov.uk/pay-self-assessment-tax-bill

thxs for all your help on everything.   Spoke to my brother and he said I'm overthinking it and just send it, most people don't even break down expenses, they do it as one figure and put all vehicle figures through whether they should or shouldn't.   All his receipts for years are in one box lol.   

The majority of responses on your various threads have been from current or former experienced tax practitioners and accountants. I would be concerned if you take on board your brother’s advice. But, at the end of the day, it is you who takes full responsibility for the return submission, Good luck!

Jeremy535897

If you include your income tax payment as an expense, I doubt you would get away with a 30% penalty if found out.

sheramber

textbook said:

purdyoaten2 said:

textbook said:

If I pay my tax bill, should I pay out of my business account?  Is it an expense?

Want to get payment across before Jan 31st as well, direct debit quick enough?

It is most definitely not an expense. You can use whatever bank account you wish. How to pay:

https://www.gov.uk/pay-self-assessment-tax-bill

thxs for all your help on everything.   Spoke to my brother and he said I'm overthinking it and just send it, most people don't even break down expenses, they do it as one figure and put all vehicle figures through whether they should or shouldn't.   All his receipts for years are in one box lol.   

Your brother is encouraging you to commit tax fraud. Be prepared for any  consequences.

nottsphil

Jeremy535897 said:

If you include your income tax payment as an expense, I doubt you would get away with a 30% penalty if found out.

But if he did, he might claim it as an expense 😁

textbook

sheramber said:

textbook said:

purdyoaten2 said:

textbook said:

If I pay my tax bill, should I pay out of my business account?  Is it an expense?

Want to get payment across before Jan 31st as well, direct debit quick enough?

It is most definitely not an expense. You can use whatever bank account you wish. How to pay:

https://www.gov.uk/pay-self-assessment-tax-bill

thxs for all your help on everything.   Spoke to my brother and he said I'm overthinking it and just send it, most people don't even break down expenses, they do it as one figure and put all vehicle figures through whether they should or shouldn't.   All his receipts for years are in one box lol.   

Your brother is encouraging you to commit tax fraud. Be prepared for any  consequences.

honestly I think lots of tradesman submit own returns, they just minus all expenses from Money in and submit.  Dont break down exoenses.  I used my book keeper's break down of expenses into categories

whizzywoo

This thread reminds of a client I had many years ago.

In addition to his normal self employed income he had a number of rental properties.

He always bought very cheap properties which needed refurbishing.  He would give us all his records which included details of the hours of labour spent doing up each property.  When questioned as to where were the builders' invoices he would say that he had done the work himself and charged to his expenses the going hourly rate!

Each year was the same, he would insist on charging for his own time.  Each year I would tell him that in that case I would have to increase his income by a matching amount and then he would back down.  He would try the same thing year after year in the hope that I had forgotten!  

To be fair though he was a lovely man in all other respects.