Skip to main content
A
AW5
December 11, 2019
Question

Starting Self Employment mid tax year

  • December 11, 2019
  • 1 reply
  • 0 views

I have started Self Employment in October mid way through the tax year.  I have been paying Tax and NI through the company I worked via PAYE from April to October 2019.

 

How do I adjust the quickbook system to recognise the TAX and NI that has been paid up to October 20th to give me the correct amount of TAX and Class 2 and 4 NI payments I have to pay when Self Employed.

 

I am based in Scotland in the UK.

 

 

 

 

1 reply

BettyJaneB
BettyJaneB
December 11, 2019

Welcome to the Communiity, @AW5.

 

You'll need to enter those taxes that you paid from April to October 2019 as Expenses. This way, QuickBooks Self-Employed will recognize the payments.

 

To do these:

  1. Hit the Transaction menu at the left pane and select Add Transaction.
  2. Enter the date, amount, and a brief description.
  3. Browse the Select a category menu and choose the best option to organise your transaction. To help you on decide what category to select, please see this link: Categories in QuickBooks Self-Employed
  4. If you have a receipt, you can drag and drop it onto the form.
  5. When you’re ready, click Save.

I've outlined these steps through the snip below:

If you wish to add more transactions that are made outside QuickBooks, I recommend checking out this source: Manually add transactions in QuickBooks Self-Employed

 

To add up, the QuickBooks-Self-employed business expenses article includes information about managing your expenses, feel free to visit it.

 

It'd be my pleasure to help you if there's anything else you need. Just leave a reply below, and we'll take it from there. Have a lovely day!

A
AW5Author
December 11, 2019

I have added the tax paid from April to October but it has made no difference at all with regards to registering the tax I owe from November onwards.  I have entered my personal tax allowance of 12500 which I have surpassed from April 2019 to October 2019.  I have attached to show what I have done

 

Also, what do I have to add to register the NI that has been paid to ensure that the Class 2 and Class 4 NI contributions are calculated properly?  At present they are both saying 0 as it does not think that I have earned enough to start paying. Again I have surpassed the threshold when employed.

 

Please advise.  Thanks

 

 

JenoP
JenoP
December 11, 2019

Thanks for sharing the screenshot, AW5.

 

Tax payments are not considered deductible or allowable expenses. This is why it doesn't have impact the calculation for the month of November. See these links and articles for additional details: 

 

 

Also, QuickBooks Self-Employed will automatically consider your National Insurance contributions when calculating your tax as long as they're recorded correctly. More info about NI contributions are discussed here:  Self-Employed National Insurance Rates

 

I would recommend reaching out to our email support team for QBSE. They'll check on your account and review your records as well to determine why you're getting 0 amount for both Class 2 and Class 4 NI contributions.

 

Go to this link to send out an email: https://help.quickbooks.intuit.com/en_GB/contact. 

 

Don't hesitate to post questions in the Community if you require additional guidance whilst working in QBSE. 

Terms & ConditionsAccessibility statement