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shamilt1
April 2, 2022
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Simplified expenses- fuel

  • April 2, 2022
  • 1 reply
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Hi. Just signed up for quick books Self-Employed. I am a sole trader and I use simplified expenses for my business miles- with this in mind should I put my fuel payments in the personal category seeing as it shouldn’t be taken into consideration for tax relief?

Also I have a set amount of money transferred out of my business account to another account weekly for my wage. Should this be tagged as personal or business (owner withdrawal).

 

Thanks, Steve. 

Best answer by emmam6

I'll help you deal with categorising your transactions in QuickBooks Self-Employed (QBSE), @shamilt1. 

 

Let me go over and discuss further details about this.

 

In QBSE, transactions that are categorised as Personal are income that's not part of your self-employed business, income from others who share your bank accounts, and personal transactions and deposits. To know more information about other categories the program has, check out this article: Learn about income and expense categories in QuickBooks Self-Employed.

 

To ensure you'll be able to record the transactions accurately, I'd highly recommend seeking assistance from your accountant. This is to avoid messing up your books and to ensure that they will be allocated to the correct category.

 

I've also added a handy article that can help you along the way. It has the instructions to create bank rules so the program will automatically categorise transactions for you: Create rules to speed up reviews in QuickBooks Self-Employed.

 

If you have any other questions categorising your transactions, please leave a reply below. I'm always here, ready to help. Have a great day ahead.


Hello Community users, We just wanted to pop in to this thread to clarify some points about categorising in Quickbooks Self Employed.

Wages paid to yourself in Quickbooks Self Employed need to be categorised as Owner withdrawal

If you are using simplified expenses for vehicles and using a flat rate for mileage rather than claiming  running costs of the vehicle and therefore you do not claim for fuel you can use the travel expenses category and it will automatically put that into disallowable expenses.

 

In terms of adding mortgage costs it would depend if you are working from home and looking to claim part of that cost in the business costs, we'd recommend looking at the HMRC guide here

 

 

Any questions at all on this let us know we'd be happy to help.

1 reply

MariaSoledadG
MariaSoledadG
April 2, 2022

Being able to categorise in QuickBooks Self-Employed is our top priority, shamilt1.

 

Normally, you can offset some of what you've spent against the tax you owe. That is if they're allowable expenses and for the business only. Allowable expenses are any costs needed to run your business. This includes travel expenses such as vehicle insurance and fuel. However, you're unable to claim personal expenses. If an item that's for personal use appears on the same receipt as a business cost, this part of the cost is known as a disallowable expense. You can choose the Business income for the correct category. But, you can also reach out to your accountant if ever you need a second opinion.

 

On the hand, money transfers between your connected accounts are usually categorised as Transfers. However, you can still ask your accountant's opinion on the correct category to choose.  For more information on categorising transactions, I've added this article for your guide: Categorise Transactions In QuickBooks Self-Employed.

 

Also, to further guide you in claiming mileage and all other travel expenses in QBSE, I'd recommend checking out these articles:

 

Feel free to let me know if you have other questions about categorising transactions. I'll always be right here to assist you.

S
shamilt1Author
April 2, 2022

Thank you for your reply but it doesn’t really answer my question.

The items I mentioned are not allowed to be offset against the tax I owe, so do all items like these need to be categorised as personal?

DivinaMercy_N
DivinaMercy_N
April 2, 2022

I'll help you deal with categorising your transactions in QuickBooks Self-Employed (QBSE), @shamilt1. 

 

Let me go over and discuss further details about this.

 

In QBSE, transactions that are categorised as Personal are income that's not part of your self-employed business, income from others who share your bank accounts, and personal transactions and deposits. To know more information about other categories the program has, check out this article: Learn about income and expense categories in QuickBooks Self-Employed.

 

To ensure you'll be able to record the transactions accurately, I'd highly recommend seeking assistance from your accountant. This is to avoid messing up your books and to ensure that they will be allocated to the correct category.

 

I've also added a handy article that can help you along the way. It has the instructions to create bank rules so the program will automatically categorise transactions for you: Create rules to speed up reviews in QuickBooks Self-Employed.

 

If you have any other questions categorising your transactions, please leave a reply below. I'm always here, ready to help. Have a great day ahead.

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