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How to deal with money I pay myself?
Every month, I make a transfer from my business account (I'm a self-employed, sole-trader) to my personal account.
I suppose this would technically qualify as "drawings". But if so, what's Transfer To Another Account for? The latter seems to help, as it also marks the transfer as incoming on the destination account, since that account is sort of in Freeagent too.
Thanks
I suppose this would technically qualify as "drawings". But if so, what's Transfer To Another Account for? The latter seems to help, as it also marks the transfer as incoming on the destination account, since that account is sort of in Freeagent too.
Thanks
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Inappropriate?Furthermore, if I want to make a regular payment to a third bank account that I use as a savings account, how should this be defined?
I'm confused as to the meaning of "savings" in self-assessment. Are you actually taxed on savings, ie. interest on savings or whatever? -
Inappropriate?Robert,
Sorry to be slow getting round to answering your question.
If you have a business account, you won't need to be tracking your personal account in FreeAgent - that's primarily for sole traders who don't have a business account.
So the transfers would really be classed as Drawings as you mentioned.
That savings account: is it a 'business savings account' - money you put away for future bills, VAT or whatever, or a 'personal savings account'?
Either way, the 'savings' element of self-assessment really relates to personal savings income (interest) across any of your personal accounts. Not that you'll be getting much of that nowadays ;=<
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Inappropriate?Robert,
Tax at 20&should be deducted by your bank from the interest. Unless you're liable to higher rate tax (40%) you won't have any further tax to pay on interest received.
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