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applying explanation changes to mis-explained items
In the past I incorrectly explained my income as PAYE/NI expenses - it should of course be Type: Money paid to user, Reason: Net Salary
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Tom,
We can change those over en-masse for you - can you confirm you'd like us to recategorise all those PAYE/NI payments as salary to yourself? I assume there are some real payments to HMRC in there...
A couple of things we're doing to help out here:
* we're introducing 'balloon help' on the explanation form to clarify the various explanation categories, so it's easier to categorise right first time.
* we're looking into ways to allow you to select multiple transactions, explanations or whatever and apply changes to all of them. This might be part of a more general Search facility.
I’m confident we can fix this up for you
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this solves the problem
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Inappropriate?Tom,
We can change those over en-masse for you - can you confirm you'd like us to recategorise all those PAYE/NI payments as salary to yourself? I assume there are some real payments to HMRC in there...
A couple of things we're doing to help out here:
* we're introducing 'balloon help' on the explanation form to clarify the various explanation categories, so it's easier to categorise right first time.
* we're looking into ways to allow you to select multiple transactions, explanations or whatever and apply changes to all of them. This might be part of a more general Search facility.
I’m confident we can fix this up for you
The company and 2 other people say
this solves the problem
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Inappropriate?Thanks Ed - that would be fantastic. There are no payments to HMRC yet, although of course I must owe them a few quid too :-)
In the longer term some more refined multiple selects would be even better - thanks!
I’m thankful
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Inappropriate?Tom - that should be done now for you - let me know if it looks OK.
I'm wondering if you really mean to be paying yourself a salary, though. As a Sole Trader does your accountant not advise you to take profits as Drawings and handle the tax under the Self Assessment 'Self Employment' pages?
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Inappropriate?Thanks Ed
I assume you're referring to http://www.hmrc.gov.uk/sa/selfemp.htm
Thanks for the reminder, and advice about self-employed drawings: I guess it should not be listed as a salary as you suggest, but I still need the total to supply to my SA online filing. Does that mean this has to be changed again to drawings?
I’m uncertain
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Inappropriate?Yes, I think so. Shall I just go ahead and do that?
In fact, the profit you make in your business is what is taxed, not how much you draw.
If you look at the Profit and Loss Account it is the Operating Profit - 'Sales' less 'Overheads' - that is used to calculate the tax.
How much you choose to take out or leave in the Company bank account from year to year doesn't affect this (if you need help sleeping ask your accountant to explain the difference between Revenue and Capital accounts. A sure-fire cure for insomnia :=)
You should really speak to your accountant for definitive advice on this too - we're not in the 'accounting advice' game...
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