How do I log funds from outside of my Monzo business account that then get moved to/from my Monzo business account?
If you have business related funds from outside of your Monzo Business account that have then been moved to/from your Monzo business account, you can use the Transfer tax category in the Making Tax Digital for Income Tax submission tool to correctly report the movement of funds to HMRC.
As an example, if a business was paid £100 in cash, and then deposited £40 of that cash into their Monzo Business account:
First the user would record the £100 cash as a manual transaction and as Income via Manual Transactions in the Making Tax Digital section of the app.
Once the user deposits £40 of this cash into their Monzo Business account, they would categorise this positive £40 transaction (found in their Monzo activity feed) as a Transfer.
This automatically creates a negative £40 transaction as a manual transaction in the Making Tax Digital section of the Monzo app to correctly balance this movement of funds.
You can use our Transfer tax category to log the movement of funds if you feel that this best fits your specific case. If you need support choosing which category to select for a transaction, please speak with HMRC, an accountant or a tax expert.
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