Recording HMRC tax payment on Crunch Free

ChrisWalker

Hi,

I’ve just completed my first self-assessment using your paid add-on (great service, thank you - very simple to use!). It has now been filed, and I’ve already logged in to HMRC and paid my tax bill for the 2022-23 tax year. I made the payment directly from my business account - the same account attached to my Crunch account.

How do I now record this payment in Crunch Free? I see some old tutorials and videos, but they refer to a ‘Tax’ dashboard that I don’t have when I log in.

Do I just record it as a normal ‘Expense’ and choose a specific category type?

Thanks for your help!

Luke_Young

ChrisWalker Hi Chris, congratulations on getting your Self Assessment filed! 😁

Unfortunately, the tax dashboard isn’t available in Crunch Free but I can help you get this sorted.

Do you run a limited or operate as a sole trader? The way in which you handle it will depend but I’ll try my best to explain both options.

If you run a limited, you’d simply record it as a new withdrawal.
You wouldn’t usually record a personal tax payment as a business expense, it has to be paid out personally to HMRC and not from a business bank account.

If you’re a sole trader however, it’s even simpler, you’d just ‘Mark it as personal’ while completing bank reconciliation!

Hope this helps, but shout if you need any more help.

ChrisWalker

Thanks very much @Luke_Young . I’m a sole trader, so it sounds like it’s pretty straighforward. I’ll mark the payment as ‘personal’ when I next reconcile.

I do have one more question if you don’t mind…

I recorded the Crunch self-assessment fee as an expense under the ‘Legal & Professional Costs –> Accountancy’ category, but I think I should have used the ‘Accountancy - Self Assessment/References’ sub-category.

So I have two queries:

1) Does it matter about the category I used mentioned above, and if so, is it OK to change the category now that it’s already been reconciled (some fields are greyed out, but I think I can edit the category).

2) Does recording this self-assessment fee as an expense mean I will now need to file a P11D? This would be the only entry on it throughout the tax year.

Thanks for your help!

Luke_Young

ChrisWalker No worries, any time!

It shouldn’t matter too much on this occasion, to be honest. The category you choose is still fine for the expense it relates to in this scenario but in the future you certainly could put it under ‘Accountancy - Self Assessment/References’ for a more specific type - you might want to filter it to see that type in the future, if you’re checking costs/outgoings/reports, etc.

You won’t need to worry about a P11D as a sole trader, those are for limited company’s.

ChrisWalker

Perfect, thanks so much @Luke_Young!

Just one final clarification, and then that’s it…

Regarding the HMRC payment, just to be clear - I upload a statement that shows the money coming out as a payment to HMRC. But then I record NOTHING in Crunch (no expense record, or anything like that), so when it comes to reconciliation, there is ‘1 to match in bank / 0 to match in Crunch’, and I just mark it as ‘personal’ at that point?

Luke_Young

ChrisWalker That is pretty much it, yeah, Although technically, you should see ‘0 to match in bank / 0 to match in Crunch’. Marking it as personal should still put an entry in the Crunch ledger, so that if you upgraded to Crunch Pro or similar then a record would be present for our Accountants and to ensure that your bank balances continue to match up in the back-end of the app.

ChrisWalker

Great, thanks @Luke_Young. I meant the ‘1 to match in bank / 0 to match in Crunch’ would show up after I’ve uploaded a statement with that payment on it, but then yeah, it would become ‘0 / 0’ after I’ve marked it as personal.

I’ve now done that - although my main business account balance on the ‘Banking –> Accounts & Cards’ screen hasn’t reduced by the amount that I uploaded on the statement. Is that right? So my balance in Crunch no longer matches the balance in my business account.

Just to be clear, my process was…

1) Upload a new statement showing the HMRC outgoing payment on it - this was the only entry on the statement.
2) Check in Crunch - the statement has correctly uploaded, and the new (reduced) balance correctly shows against the statement entry.
3) Go to Crunch reconciliation - it says '1 to match in bank / 0 to match in Crunch’.
4) Marked it as personal, and it changed to ‘0 to match in bank / 0 to match in Crunch’.
5) Check the account balance on the ‘Accounts & Cards’ screen - it hasn’t changed, i.e. it hasn’t been reduced. It should be the same as the balance on the statement I uploaded in step 2.

Luke_Young

ChrisWalker This should update upon your next statement upload and reconciliation 😀

If you go to ‘More…’ and then select ‘View personal transactions’ it should tell you the balance expected.

ChrisWalker

Thanks @Luke_Young, you’re right, the balance there under ‘personal transactions’ is showing the correct figure. No problem if it’ll update the next time I do another reconciliation.

Thanks for all your help - I really appreciate it!

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