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Why does "CAR VAN TRAVEL EXPENSES" allocate to "DISALLOWABLE EXPENSES" in Tax Summary ???

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Hello community.

Why does "CAR VAN TRAVEL EXPENSES" allocate to "DISALLOWABLE EXPENSES" in the Tax Summary every time i add a transaction for EXPENSES in QB self employed version ???

Thank you .................

QuickBooks Self-Employed

E

EmmaMAnswer

Hello John

In the self employed product if you are manually entering the expenses and setting them to car/vehicle expense rather than using the mileage tracker then when you attach the category of car vehicle expense it will put this to dis allowable.

Only travel expenses in that case will be allowable.

Any questions further on this let us know

Emma

Rustler

If you used the standard mileage rate last year, then you must use it for that vehicle forever more

Using the standard mileage rate means you can not expense vehicle expenses

did you use the standard mileage rate last year?

J

John1971Author

Hello Rustler, no I do not use the standard mileage rate, I am a builder and have a van and expenses. Thanks.

E

EmmaMAnswer

Hello John

In the self employed product if you are manually entering the expenses and setting them to car/vehicle expense rather than using the mileage tracker then when you attach the category of car vehicle expense it will put this to dis allowable.

Only travel expenses in that case will be allowable.

Any questions further on this let us know

Emma

B

BC FRESH

how to set up

JessT

Hello BC FRESH,

You'll want to enter your transactions based on the actual scenario and there isn't a special setup for them.

When you track miles, this will consolidate your travel expenses in the Disallowable column. However, if you just enter expenses without using miles and directly categorise them as Car/van expenses, this will add them to the Disallowable column.

Feel free to reach out if you have other questions.

T

TrevorS

Allocate your car/van expenses to the Travel Expenses category, when you run a Tax report it will show up as Car/Van and Travel expenses.

C

Colin Martin

Jumping in on an old thread here. I'm having the same problem.

I changed my car August 2020 and was claiming against mileage of the old one but now claiming expenses and capital allowances on the new one. I've finished my accounts for 2020 to 2021 and the mileage is showing as allowable in the tax summary but all of the car expenses for the new car are disallowable.

I can put the new car expenses as allowable expenses when I complete my tax return but it's annoying having them shown as disallowable on QuickBooks Self Employed.

Not very good Quickbooks, have you put any thought into this? Maybe make the car/van expenses category selectable for allowable, disallowable.

JessT

Hi Colin Martin,

Thanks for jumping in. However, it would be best to contact our Support team about your issue. That way, they can use more tools to check it further.

If you have other concerns, feel free to go back to this thread.

L

LivSimister

So...years later, this is still an issue with Quickbooks. Nice to know the coding team are really earning their money.

ALL of my expenses for my car have been put in the disallowable column, despite them being fully allowable expenses.

Like many people, I have to have my car for my job, which includes all the fun costs: fuel, parking, insurance, etc. So why then does it seem that EVERY time someone has asked about this, we're being referred to accountants?

I thought the whole point of using Quickbooks is that it helps you keep track to either a) file your taxes yourself or b) make it simpler for your accountant - and therefore cost less?

If someone could explain, in simple terms, how to amend this issue, that would be great. I don't want to speak to an accountant. I don't want to faff with the automatic vehicle tracking and all that garbage. I just want to know why these expenses are being put on the Disalloable portion (especially the ones with scanned receipts) and HOW to fix it.

AlcaeusF

Hi Liv,

Thank you for posting here in the Community. Allow me to chime in and share information about your Tax Summary concern in QuickBooks.

There are specific deduction categories to show transactions as allowable expenses on your Self-assessment tax return. The only workaround is to choose the closest category to show the expenses in the Allowable column in the form.

We have a link that contains all the information you need per box for the self-assessment tax return. You can correct the issue by updating the categorization of your expenses. Check out this article for additional guidance: Allowable and disallowable expenses explained.

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

Let us know if you still have more questions or concerns about adding the expense categorizations by leaving a reply. We'll help you out. Take care, and have a great rest of the day.

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