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Expenses wrongly categorised as disallowable

Forum|Forum|4 years ago
March 25, 2022
4 replies
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I'm new to QuickBooks and I've recently uploaded and categorised a lot of past transactions.

I've gone onto the Tax summary page, and some of these transactions are wrongly in the 'disallowable expense' category.

Oddly, this isn't consistent at all - For example, my Zoom subscription is sometimes in the disallowable section and sometimes in the allowable section! It's very odd.

Is there a way to manually adjust whether it's allowable or disallowable?

Thanks in advance.

H

QuickBooks Self-Employed

Best answer by katherinejoyceO

I have also run into this issue, did you find out whether the category 'other business expenses' just made everything disallowable? Clearly Quickbooks didn't answer your question.

Thanks for joining us here, I understand The need to fix the issue on some category other business expenses that had made everything disallowable. It is down to the category used, bank rules that have been set and the Tax profile details entered whether an item will be pushed into disallowable. We'd need to do a screenshare and look at the transactions in question and the categories used and the tax profile in order to determine why this is happening.

At this point, I suggest contacting our QBSE Support

Click the Help icon, then select on the Contact Us link.
Enter the issue/topic in the field box.
In the Choose a way to connect with us section, select Chat

You can read through this article to learn more about the allowable and diallowable expenses in QuickBooks Self-Employed: About SA103F Categories.

Get back to me whenever you have additional concerns. Take care!

KlentB

Thanks for checking out the Community spae, H Compton.

QBSE automatically determines whether or not an expense is allowable depending on the information you've entered on your tax profile. This way, you don't have to manually adjust or classify them.

Take note that there are types of expenses that aren't business allowable based on your business operation, entity, and local regulation. You'll also want to review the category of the uploaded transactions to ensure they'll be reported accurately.

For more tips in managing your expenses in QuickBooks Self-Employed, I encourage reading this article:

You can always visit us here if you have other questions about tracking your expenses. I'm always here to help.

H

H ComptonAuthor

Hi KlentB,

I know that some expenses aren't allowable. However, why, for example, are half of my Zoom subscription payments under 'allowable' and half of them under 'not allowable'?

It is an allowable expense, it's from the same provider, under the same category. What part of the system chooses that half of the subscriptions aren't allowable?

I've put the expense under 'Other business expenses' as there doesn't seem to be another category which is more suitable.

Could you advise if this is correct?

This is a massive flaw in the software. The automation isn't always going to get it right, so there should be a way of manually changing it so the Taxes data is actually reliable.

Thanks in advance.

G

GeorgiaC

Hi H Comptom, this sounds unusual - so that we can check this further, please reach our live chat support on this link - they'll have the tools to take some specific account info and can set up a screen share to view the error :)

S

Skeeg

This is not solved! Reading through the comments it seems that people are not listening to the real issue. The OP clearly understands that different categories give different allowances, and they have explained that they are seeing the same transactions in the SAME categories giving inconsistent results.

I'm also having this problem. 11 x Home Office costs have been disallowed. 1 is allowed.
Some Advertising / Website costs are allowed, others are disallowed.

It seems random. This is clearly a bug, or an issue with my set up, but I have filled in the limited info in the tax profile and my reports are still all incorrect.

F

Faz333

Is there a way to fix this now?

I have £15k of incorrectly labelled disallowable expenses here on my profile.

Many thanks.

K

Kevin_C

Hello there, @Faz333. I'm here to share some information on why those expenses are categorised as disallowable. I'll also lay down a solution to ensure your expenses are properly categorised so your tax summary report will also be accurate.

The QBSE program will categorise your transactions as allowable or disallowable based on what specific category you've chosen upon categorisation. This is because each category is associated with specific SA103F box numbers which decide if it will be allowable or disallowable expenses on your Self Assessment tax return.

Please take a look at this article for more information contains the SA103F box numbers, QuickBooks account detail types, and information about what expenses you can deduct and what you can't: Allowable and disallowable expenses explained.

Furthermore, you can reach out to our Customer Care Team to perform a screen-sharing session to assist you with locating the incorrectly categorised expense transactions that caused them to appear in your disallowable expenses.

In case you need additional assistance on what specific account to use for tracking these expenses, I recommend seeking help from your accountant to ensure that your books are accurate. They'll also be able to provide more expert ways of dealing with this situation.

To change the category, simply go to the Transactions page, and then find the expense. Click the category and recategorise it to the correct one.

In case you'd like to take care of your self-assessment taxes on your own in Self-Employed in the future, I'll add this guide: Self Assessment for Income Tax checklist for QuickBooks Self-Employed.

This thread's still open if you have more questions about your transaction categories. If there's anything else I could do for you about your reports or any other things in Self-Employed, feel free to add the details to your reply. Have a good one.

J

JamesK 12

I am an accounting professional completing a Self Assessment on behalf of a client and this is clearly a very important issue that QB is completely getting wrong. I've looked at my client's records and every transaction is posted and categorised correctly, but when I drill down into the disallowable expenses every single one is allowable so QB has undercalculated the allowable expenses by £3.2k for this client and they would have paid an extra £640 in tax because of this. Even with our fees the client will have saved money on tax compared to just using what QB says.

Note to QB - your responses on this are entirely inadequate

A

Ashleigh1

Hello JamesK, thanks for sharing this, we have passed it onto the team.

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