Refunds

Welcome to the Community, STS89.

QuickBooks Self-Employed is intended for business owners with simple business structures. This means no employees or contractors, and very few customers to invoice.

Each time you enter a transaction in QuickBooks Self-Employed, you must categorize it. This includes transactions downloaded from an online bank account or manually entered. If you don't want the return purchase or refund to appear as income, you can classify it as an expense. 

Here's how:

1. Go to the Transaction menu and select Add Transaction.
2. Enter the amount and a brief description.
3. Click the Select a category menu and choose the best option to organize your transaction.
4. Select Save.

If you're unsure about which category to use, I recommend consulting with your accountant. They can also advise you on whether you can simply exclude the purchase and refund to eliminate it from your estimated taxes.

I've added the following resources below to assist you in handling your taxes:

• The QuickBooks Self Assessment for Income Tax checklist
• Categorise transactions in QuickBooks Self-Employed

You're always welcome to post here if you have any additional concerns. Our doors are always open to assist you.