Adding taxed income from PAYE role to Business Account

Steven Swallow · ‎January 26, 2023

Hi all.

At one point during COVID I got a part-time job. Standard PAYE role so income was taxed. I transferred some of this income on a monthly bases to my Business Account and am not sure how to enter this into QuickBooks so it's all just sitting in Transactions/For Review rather than Categorised. How do I record these transactions and would they get taxed again when I do my tax return?

I'm self-employed and using QuickBooks Online.

Thanks!

GeorgiaC · ‎January 26, 2023

Hi Steven, thanks for joining the Community - we don't currently have a recommended process for recording PAYE payments when using the income tax feature in QuickBooks Online. We'd advise speaking with your accountant to discuss how to account for these - you can also refer to our guide to understanding income tax for further support. We're continuing to expand this feature, and at the moment it is best suited to sole traders who don't have any disallowable expenses.

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GeorgiaC · ‎January 26, 2023

Hi Steven, thanks for joining the Community - we don't currently have a recommended process for recording PAYE payments when using the income tax feature in QuickBooks Online. We'd advise speaking with your accountant to discuss how to account for these - you can also refer to our guide to understanding income tax for further support. We're continuing to expand this feature, and at the moment it is best suited to sole traders who don't have any disallowable expenses.

paul72 · ‎January 26, 2023

Hi @Steven Swallow

The only way to classify this would be as a loan received (so a liability - maybe a Director's Loan - as far as the QBO company is concerned).

That way, when you repay the loan it won't be double-taxed.

Make sure you keep good notes on this as it's something that could look dodgy if viewed out of context.

(the repayment might look like you're trying to take untaxed money from the company)

Hope this helps.

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Adding taxed income from PAYE role to Business Account