Quick question about moving money between accounts

Discussion in 'Accounts & Finance' started by DE90, Jan 14, 2019.

  1. DE90

    DE90 UKBF Contributor Free Member

    36 1
    Just a quick question to check I've got the right end of the stick on this one:

    For a sole trader, if you move money from your (nominally) business Paypal/bank account into your (nominally) personal Paypal/bank account (or the reverse), or if you move money between different business Paypal/bank accounts, is it correct to say that none of those transactions should come into your calculation for profit/loss, which determines how much tax you pay?
     
    Posted: Jan 14, 2019 By: DE90 Member since: Sep 14, 2018
    #1
  2. Scalloway

    Scalloway UKBF Legend Free Member

    14,690 3,134
    Yes. You are just moving your own money around.
     
    Posted: Jan 14, 2019 By: Scalloway Member since: Jun 6, 2010
    #2
  3. MyAccountantOnline

    MyAccountantOnline UKBF Legend Full Member

    12,570 2,338
    That's correct.

    Its only income and expenses which are part of the Profit and Loss account.
     
    Posted: Jan 14, 2019 By: MyAccountantOnline Member since: Sep 24, 2008
    #3
  4. DE90

    DE90 UKBF Contributor Free Member

    36 1
    Thanks for your replies. One other quick question: On the cash basis, if I purchase some stock near the end of the tax year, but return it for a full refund after the start of the new tax year, is it acceptable/correct to keep the purchase as an uncancelled expense in the earlier tax year's accounts, and have the refund as a credit against (other) expenses in the later tax year? (i.e. to have the credit reduce expenses in the new period when the credit was received)
     
    Posted: Jan 14, 2019 By: DE90 Member since: Sep 14, 2018
    #4
  5. Scalloway

    Scalloway UKBF Legend Free Member

    14,690 3,134
    Yes that will be ok.
     
    Posted: Jan 14, 2019 By: Scalloway Member since: Jun 6, 2010
    #5