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SuperslowJelly
November 12, 2024
Question

Quickbooks Online or Self-Employed?

  • November 12, 2024
  • 1 reply
  • 0 views

I'm a newly self-employed person who was previously employed through PAYE in the same tax year. I see that the intended way to set up support for my situation is to use the Quickbooks Self-Employed service.

However, my main customers pay me in USD (as opposed to my native GBP), which Quickbooks Self-Employed does not support. Because of this, I am using Quickbooks Online Essentials so that I can enable multi-currency.

 

How can I set Quickbooks Online Essentials up so that I can register my P45 earnings and see my tax reflected correctly on my self-employed earnings whilst maintaining support for multi-currency?

1 reply

C
CharleneMaeF
November 12, 2024

Hi, SuperslowJelly.

 

You made the correct option to use QuickBooks Online Essentials for multi-currency functionality. I'm here to ensure everything is set up correctly in the program.

 

First, let's register your P45 earnings in QuickBooks Online Essentials. To do so, I recommend manually creating a journal entry to add them to the program. Here's how:

 

  1. Go to + New and then select Journal entry.
  2. On the first line, select an account from the Account field. Depending on if you need to debit or credit the account, enter the amount in the correct column.
  3. On the second line, select the other account you're moving money to or from. Depending on if you entered a debit or credit on the first line, enter the same amount in the opposite column.
  4. Check the amounts. You should have the same amount in the Credit column on one line and the Debit column on the other.
  5. Click Save and close.

 

However, it's highly advisable to consult with an accountant familiar with UK tax laws and QuickBooks to ensure proper setup, recordings, and tax compliance. They can also offer other ways to track the P45 earnings in the program. If you don't have one, you can use our Find an Accountant tool to reach out to an expert near you.

 

Furthermore, I recommend checking out this article to help you utilise the Multicurrency feature in the Essentials version: Set up and use Multicurrency in QuickBooks Online.

 

Lastly, you can visit our Taxes page to guarantee that the tax is accurately recorded on your self-employment earnings. This page offers resources for tracking and managing taxes in QuickBooks.

 

I'm only a post away if you need additional assistance with this. I'd be more than happy to work with you to ensure everything is all set. Take care!

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