Why does QuickBooks Self Employed include car hire payments and fuel costs in 'DISALLOWABLE EXPENSES' for a driving school vehicle? These are valid expenses and are included by my accountant when preparing my tax return yet QuickBooks Self Employed excludes them???
Hello, Herts Driver Training.
I'll share some information on why those expenses are categorised as disallowable. I'll also lay down a solution to ensure your expenses are categorised correctly for your accountant.
I take it that those expenses are categorised as Car/van expenses. QuickBooks Self-Employed would count those transactions categorised under this category as disallowable expenses. This is the reason why your car hire payments and fuel costs appear as such on your sheet.
Since these expenses are valid, we'll want to recategorise them as Travel expenses. This way, QuickBooks Self-Employed will be able allow these transactions under Allowable Expenses on your tax sheet.
To change the category, simply go to the Transactions page, then find the expense. Click the category and recategorise it as Travel expenses.
For more details about allowable and disallowable expenses in QuickBooks, take a look at this article: Allowable and disallowable expenses explained.
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. Always here to help.
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