Just a really quick question. I am just finalising my own books for my SA, yes I know I leave it to the last minute but been very busy with clients, can't really complain! When I paid last years Tax on line, I wasn't sure where to post it in Quickbooks, so rang the helpline and they said set up new account in Chart of Accounts labelled 'Personal Income Tax', (Expense a/c), which I did no problem.
I am now running through my books and just checking that everything is Ok before going on line tomorrow and doing the tax, but I am having doubts whether they have given me the correct info all that time ago. (Haven't got support now so can't ring them). Anyway they were pretty useless at advising as they, in my opinion are just a call centre, not qualified people in bookkeeping etc. My question is should it be an expense account or should it be posted to Drawings? I am a Sole Trader.
I know someone on here will reply with the answer, as the forum is brilliant and everyone helps each other out. Many thanks,
Amanda. PS Next year I am doing my books first!!!!
-- Edited by Amanda on Wednesday 27th of January 2010 10:26:57 PM
sorry I didn't get in touch last night. My boy was a bit poorly.
Anyway, to the question.
You're right, they're wrong.
For personal tax as a sole trader it's part of drawings and the tax is born personally against those drawings. No recording of your personal tax at all in the companies books
Sounds as though the helpdesk gave you advice based on you being an employee of your own limited company rather than a sole trader.
I'm sure that if I got any of the above wrong Phillip will be eagerly waiting to pounce!
Hope you found the gumf about the ACCA of some use last night.
Have a good one Amanda, talk later,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Thanks Shaun, I didn't expect an answer last night as it was a late one!
I had a hunch they were wrong, but when I inputted it last year didn't really think about it. I suppose you gain more experrience as you go along. If I was using an accountant it would have got picked up but I am doing it myself as only small. Like I said when they offer support and you pay for it you expect qualified people to give you the answers, not just people picking up the phone as a call centre, hence why I don't pay for support anymore, I could give them advise!!
I will now go back in and edit what I did, quite easy to do on QB. Glad I asked now.
Info was good last night about the ACCA, the F7 (I think that was the one), dosen't look too bad, not as bad as I thought anyway. When you say you have to gain 2 years supervised experience, are you saying you would be forced to get a job with an accounts practice? Like being Self-employed as it fits nicely around the kids, and hubby has a Full-Time job which can be long hours, also earn more money at the same time so good all round! The big plus is its enjoyable and varied work at the same time. No time to get bored!
Many thanks for helping.
Amanda
-- Edited by Amanda on Thursday 28th of January 2010 10:08:21 AM
Still waiting in anticipation of disagreement from Phillip!
Two options with the ACCA. The first is that you can work directly for a practice (which is how they manage to get people who've paid out thousands on study to work for less than minimum wage(#1)). Or continue as a self employed bookkeeper but under the supervision of an accountancy practice.
The problem with the second option is that there's also a Practical Experience requirement with loads of boxes that you have to get signed off by a qualified accountant and bookkeeping doesn't cover the bulk of the boxes. Have a look at :
Thankfully mines already fully signed off under the old Student Training Record route from work in banking but I've still got those two years post qualification that I'm going to have to spend in practice somewhere.... Tell you what, when I've (finally) got a practicing certificate from the ACCA, if you've passed all of your ACCA exams you can come and work for me!
Talk soon,
Shaun.
#1 which of course is illegal but the expectation is that you work a lot more hours than you are contracted to do at no additional charge.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I don't know QB but I would agree that your personal tax being self employed is classed as drawings and is not a business expense. If it was Ltd, then it would be under PAYE and a different kettle of fish.
Atleast we'll know where to come to sign off some accounts at a good rate!!!
