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Why is rent showing as a disallowable expense?

Only part of my monthly rent (an expense) is showing as an allowable expense for tax purposes. All of it should be allowable. What can I do to change this? Am I categorising it incorrectly?

Many thanks,

Di

Best answer 05-10-2019

Accepted Solutions
Experienced Member

Re: Why is rent showing as a disallowable expense?

Hi Emma,

I have entered the hours I work from home and my self-employment started before 2018 so I can't enter the date it started. Until this tax year I had a combination of self-employed and PAYE income.

I work from home 16 hours a month and rent a room in a clinic for the rest of the time. It is the rent I pay for this room that should be showing as an allowable expense.

Di

QuickBooks Team

Re: Why is rent showing as a disallowable expense?

Can you please a screenshot the Tax profile and the transaction recorded for the rent which has gone to disallowable. I believe this is due to the hours posted tax profile which is then changing the allowable amount for rent expenses.

 

With screenshots we may be able to advise further.

 

 

4 REPLIES 4
QuickBooks Team

Re: Why is rent showing as a disallowable expense?

Hello Di

 

There are a few reasons why it might only put part of the expense into allowable

Can we just confirm whether in the tax profile in the cog in the top right, do you have any hours worked from home and also have you entered a date in the self employment start date?

 

Thanks

 

Emma

Experienced Member

Re: Why is rent showing as a disallowable expense?

Hi Emma,

I have entered the hours I work from home and my self-employment started before 2018 so I can't enter the date it started. Until this tax year I had a combination of self-employed and PAYE income.

I work from home 16 hours a month and rent a room in a clinic for the rest of the time. It is the rent I pay for this room that should be showing as an allowable expense.

Di

QuickBooks Team

Re: Why is rent showing as a disallowable expense?

Can you please a screenshot the Tax profile and the transaction recorded for the rent which has gone to disallowable. I believe this is due to the hours posted tax profile which is then changing the allowable amount for rent expenses.

 

With screenshots we may be able to advise further.

 

 

Experienced Member

Re: Why is rent showing as a disallowable expense?

Hello again,

I've added in my self-assessment tax liability for 2018/19 and my rent is now all showing as an allowable expense!

I think it's sorted! 

Thanks for your help.

Di