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Paying HMRC

Forum|Forum|5 years ago
September 1, 2020
1 reply
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I am sole trader, operating out of one bank account, using QBSE to record transactions and such. One thing that I've always had issues with is exactly how to record a payment to HMRC. If I mark it as a 'taxes' transaction, that immediately marks it as a business expense, ergo tax deductable which makes no sense.

Do I just mark payments to HMRC as excluded?

QuickBooks Self-Employed

Best answer by katherinejoyceO

Thanks for coming back for more assistance, @ayjay. I can clarify things out about how tax payments being categorized in QuickBooks Self-Employed.

In QBSE, tax payments should be categorized as Business >Taxes. You can check your reports as it should fall under Disallowable Expenses which means it is non-tax-deductible.

Here are articles that you can check out for your reference:

How QuickBooks Self-Employed calculates tax payments. It helps you learn about SA103F deduction categories as allowable expenses for self-employment.
HMRC self-employment notes. You can use this for future reference in filling in the self-employment tax returns.
Expenses if you're self-employed. This contains help links from HMRC about the costs that you can claim as allowable expenses.

As always, I'm here to assist you in the best way I can. Have a great day.

E

EmmaM

Hello Ayjay, thanks for reaching out to the Community. More information can be found here on the categories for the Self Employed expenses. If it's not to be included as not an allowable/disallowable expense on the self-assessment then you could exclude it. It is worth confirming with your accountant.

A

ayjayAuthor

Thanks Emma, I do my own books and tax return. It's why I signed up to QBSE in the first place. This is one of the only things I don't quite get about the system. QBSE is about helping self employed keep track of books and that should include the ultimate aim; a tax payment. In my mind there should be something that allows one to flag a tax payment to HMRC as exactly that, partly so it isn't included in the next year's expenditure, and so one can see easily when tax was paid.

Am I just blind? So far in previous tax years I've marked the payments going out my account as exempt from current tax year calculations as they are in fact tax from the previous years.

katherinejoyceOAnswer

Thanks for coming back for more assistance, @ayjay. I can clarify things out about how tax payments being categorized in QuickBooks Self-Employed.

In QBSE, tax payments should be categorized as Business >Taxes. You can check your reports as it should fall under Disallowable Expenses which means it is non-tax-deductible.

Here are articles that you can check out for your reference:

How QuickBooks Self-Employed calculates tax payments. It helps you learn about SA103F deduction categories as allowable expenses for self-employment.
HMRC self-employment notes. You can use this for future reference in filling in the self-employment tax returns.
Expenses if you're self-employed. This contains help links from HMRC about the costs that you can claim as allowable expenses.

As always, I'm here to assist you in the best way I can. Have a great day.

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