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:
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
We have to collect some data when you use this website so it works and is secure. We'd also like your consent to collect data to study how people use our site. Doing so helps us improve our services and allows us to tailor the marketing you see on our site. Select 'Accept all' to agree or 'Manage consents' to choose which cookies we use. You can change your mind at any time by clicking the 'Manage Cookies' link.
Choose your cookie preferences
Some cookies are needed to make our website work and can't be turned off. But we need your consent to use others that are not essential. You can make your choices below and update them at any time using the 'Manage Cookies' link. To find out more, visit our Cookies Policy.
These cookies are necessary for the site to function. They also help us keep your data safe.
These cookies allow us to enhance your experience and remember your preferences, region or country, language, and accessibility options.
These cookies tell us how customers use our website. We study and organize this data to help us optimise our content and provide you with personalised experiences.
These cookies help us provide you with relevant communications and ads in our products and on other sites.