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C
Chloe Batchelor
January 8, 2025
Question

Why are my other business expenses showing as disallowable?

  • January 8, 2025
  • 1 reply
  • 0 views

Wondering if someone can help? 

In my self assessment summary I have expenses that are showing as disallowable.

The previous year I have the same expenses and they are fine?

When I double click the figure I was hoping it would show me the transactions that were disallowable so I can resolve the issue. It's showing me all of my 'Other Business Expenses' for things I know are allowable, such as monthly software I require for my job, and products with receipts. Any ideas?

 

Thanks!

1 reply

M
Maybelle_S
January 8, 2025

Thank you for contacting us about the issue with your business expenses showing as disallowable in QuickBooks Self-Employed (QBSE), Chloe. We're here to help you understand why this might be happening and guide you on how to resolve it.

 

Disallowable expenses in QuickBooks are typically those that cannot be deducted from your business income for tax purposes. However, if you see legitimate business expenses like software and product purchases marked as disallowable, it might be due to how they are categorised.

 

Ensure that these expenses are correctly categorised as business expenses. In QuickBooks Self-Employed, you can categorise transactions as "Other Business Expenses" or more specific categories like "Software" or "Supplies." If these are correctly classified, they should appear as allowable expenses.

 

Also, double-check each transaction to ensure it is marked as a business expense. Sometimes, transactions might be incorrectly marked as personal or disallowable.

 

If the same expenses were allowable in the previous year, it's possible that there was a change in how QuickBooks categorises certain expenses or an update in the system that affected this. You can review any system updates or changes in your categorization practices.

If you're unsure, consulting with an accountant can help ensure expenses are correctly categorised for tax purposes.

 

Thank you for your patience and understanding. If you have any more questions or need further assistance, please don't hesitate to contact us. We're here to help you manage your finances efficiently.

C
Chloe BatchelorAuthor
January 9, 2025

Thanks so much for replying!

 

I can't see more specific categories like "Software" or "Supplies." in the drop down catagory options?

Did you mean, adding the word 'software' to the transaction details?

Apologies if I'm missing something! Thanks for your help! 

 

M
Maybelle_S
January 9, 2025

Thank you for reaching out about the category options in QuickBooks Self-Employed (QBSE), Chloe.

 

Currently, QuickBooks Self-Employed uses categories aligned with Schedule C for self-employed individuals. However, you can use the existing categories and add more details to the transaction description to help track these expenses.

 

For example, you can select a relevant category from the available options and then add "Software" or "Supplies" in the transaction details to provide more clarity. This way, you can still track these expenses effectively.

 

Please let me know if there's anything else I can assist you with. I want to ensure everything is taken care of for you.

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