currently seeking some advice on how to categorise a Business loan and Covid grant into quicklook self-employed , business loan is showing up as income and my tax payment had increase significantly. need to correct this asap. thank you in advance for your help.
You can record and categorize your business loan as Personal Income in QuickBooks Self-Employed. I can guide you in doing so.
Go to the Transactions menu.
Click the Add Transaction button.
Enter the Loan details.
Choose Personal in the Type column.
From the Category column, select Income.
Click the Save button.
Once you start paying the business loan, the payment for the loan capital will be categorized as Repayments of Loans. Then, assigned Interest on banks/loan for the interest paid.
On the other hand, the grant amount you've received will be subject to income tax and National Insurance contributions. However, does not have to be repaid. During the filling of your annual taxes, you'd want to make sure to manually enter the full amount of your loan and covid grants on your self-assessment tax return. I'd recommend consulting with an accountant so you'd be guided accurately in tracking your loans and grants.
Lastly, I've attached these articles to help you manage your self-employed related transactions: