Hi,

Am I correct in thinking that NI, donations and tax paid all do not appear on the profit and loss account?

Many Thanks.
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If you are acting as a sole trader then you are correct that tax and NI do not appear in the P&L. The reason for this is that the tax and NI are levied on you as an individual and not on the business. Therefore they are not a cost to the business in the way that, for example, stationery is.

What do you mean by donations? Are you talking about donations to a charity?

David.
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Hi, Thanks, yes charity donations.
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Charitable donations by individuals are not allowable expenses and treated as personal expenditure after tax.

Further details on charitable donations can be found here
http://www.hmrc.gov.uk/helpsheets/hs342.pdf
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Be sure that it is a charity donation. Many payments listed as donations are often payments for advertising in a programme at an event run by the charity. Those payments should be shown as advertising costs, not donations, and are of course allowable.
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Good point David
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and dont forget you can claim higher rate tax relief on charitable donations if you aare a higher rate tax payer
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