Recording assets claimed in Annual Investment Allowance

John C - you’re misunderstanding the question though. It’s not a technical one requiring assistance from an accountant, we’re literally just looking to locate the Annual Investment Allowance category within the app - I presume it must be in there somewhere? It’s generally one of the highest and most used categories on any self assessment submission…

Hello, MikeyJay85.

I'll shed some light on handling Annual Investment Allowance entries in QuickBooks. 

If you're using QuickBooks Self-Employed, we could tag Annual Investment Allowance under Business Expenses to show it under Allowable Expenses.

Although for transparency, we don't have a category that allows us to specifically tag Annual Investment Allowance entries in this platform. 

Check out this guide if you need help managing your expenses in the platform: Allowable and disallowable expenses explained. 

So, as JohnC discussed, categorising Annual Investment Allowance requires an accountant. They can guide us on how to account for these specific entries, and ensure your tax forms are correct. 

They'll also help you handle those entries if you're using QuickBooks Online. 

Just to reiterate, let's look for a qualified accountant here: https://quickbooks.intuit.com/uk/find-an-accountant/.

Also, an accountant user might chime in this thread to share their insights and expertise about categorising Annual Investment Allowance in Self-Employed or QuickBooks Online. 

Do you need a guide or two about running reports or managing your self-assessment taxes? I'll share these articles with you: 

• Self-Employed: Self Assessment for Income Tax checklist for QuickBooks Self-Employed.
• QuickBooks Online: Run reports in QuickBooks Online.

Do you have any other concerns about your self-assessment taxes? Or would you like some assistance in recording other entries? Let me know and I'll share the details with you. 

Thank you for your reply, but once again I must say you seem to be missing the point here. Neither I, nor the original poster need assistance from an accountant on how to categorise AIA. I’m totally comfortable with where it goes on the self assessment form. It’s its own, separate form of expense, and needs a single, totally separate category. Actually in truth it needs to be a different option on its own, separate from expenses, as AIA is different from day to day expenses.

We’re not looking for tax advice here, purely technical help with the app - and you’ve answered this by saying there’s currently no place to log AIA. This is unfortunately a huge issue with the system, and really needs addressing. It’s such a massive part of a self assessment tax return, I can’t understand how it’s been overlooked.

The work around of using one of the lesser used categories and then transferring that figure into the AIA section of the self assessment form will work for now, but users need to ensure that only AIA entries go into this category, so that it’s not mixed up when you go to enter the tax return at the end of the year.

Capital allowances (of which AIA is one type) is not something that gets recorded in the books of a business.  It is a supplementary set of calculations on assets and writing them off that are done outside of the books.  One records the purchase and depreciation and sale of assets in the books but when the adjustment calculation from net profit for the year to taxable income for the year is performed "depreciation" and "profit/loss on sale of assets" are removed or added back from net profit (depending on how they affected the profit).  Capital allowances are then entered in the tax return to deal with the cost of assets.