Entering PAYG tax instalments

1

Hi, How do I record my quarterly PAYG instalments to the tax office? ATM they are sitting in Expenses. I am not registered for GST so do not submit BAS statements for GST

Thank you

2

It sounds like you have done things correctly as long as the PAYG installments are an expense of the company and not of an owner or partners. (You said nothing about your form of organization.) An expense account like Taxes paid is virtually universal in charts of accounts.

3

Thank you for your reply :slight_smile: I am currently self employed and issue invoices for my services. I use Manager as a record to provide details to my accountant at the end of the FY.

4

Then depending on local tax laws, your tax installments may be personal expenses, not company expenses. In that case, they should not appear in your business records at all, as they end up being applied to your personal tax bill when the annual return is filed. This is a matter for a local accountant to advise you on.

5

Thanks… I’ll check with the accountant

6

If you are receiving a “Quarterly PAYG Instalment notice” from the Tax office, then the payment thereof gets posted to the Balance Sheet - Equity section (assuming you are paying from the business bank account) as it’s a personal expense, payable on your personal income - not a business expense so it shouldn’t be sitting in Expenses.

So use the same equity account as whenever you use business funds to pay for private expenses.

7

Thanks for that Brucanna :slight_smile: