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V Andrews 205
Level 2

Personal Tax Allowance

I am using QuickBooks Online and need to prepare my Self-Assessment for 2020/21. Thanks to the SEISS payments and a VAT refund my profit for the year is a lot more than usual, so I am going to have to use more of my personal tax allowance than previously.

Currently all of the payments that I have made to myself are recorded as Owner Withdrawal and showing as allowable expenses as they have been matched from my bank account feed. This means that when I run a Self-Assessment Calculation it is wrong as owner withdrawals are disallowable expenses.

I have read various articles about how to correct these and the most obvious answer seems to be to create a personal bank account and transfer payments rather than create an expense.

In your opinion is the best way to correct last year's profit to go back over the last 12 months, delete the expense and create new transfers? I know your usual response is to ask your accountant but to be truthfully honest I don't have a lot of faith in mine. I want to send him as much information so that he's not sitting on my accounts for nearly 7 months before doing my return leaving me in the situation where I could possibly miss the return date.

Solved
Best answer April 15, 2021

Accepted Solutions
EmmaM
QuickBooks Team

Personal Tax Allowance

Hello V Andrews 205, At the moment with the Online product  you can only record allowable expenses for self assessment  and works best for businesses without disallowable expenses so the best option would be to remove them to a different category where you can still keep track of the amount if  you then want to add to a disallowable section in the SA103F form for example. The QuickBooks Online functionality for the income tax calculation will be increasing as we head towards direct filing. At the moment here is a link to the functionality currently

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2 REPLIES 2
EmmaM
QuickBooks Team

Personal Tax Allowance

Hello V Andrews 205, At the moment with the Online product  you can only record allowable expenses for self assessment  and works best for businesses without disallowable expenses so the best option would be to remove them to a different category where you can still keep track of the amount if  you then want to add to a disallowable section in the SA103F form for example. The QuickBooks Online functionality for the income tax calculation will be increasing as we head towards direct filing. At the moment here is a link to the functionality currently

View solution in original post

V Andrews 205
Level 2

Personal Tax Allowance

Thank you.  I had drafted transfers for this quarters payments and it looked right so have gone back through last year's payments and done the same.  I just need to work out when I should be creating journal entries for capital expenditure now and I should be ready for accountant.