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PaulaViner
Level 1

Estimated Tax - Self Employed

Can someone please confirm that the estimated tax shown on my home page is an estimate of what I will need to pay at the end of the year and not the tax on what I have invoiced so far.

Thank you

Solved
Best answer September 20, 2019

Accepted Solutions
IamjuViel
QuickBooks Team

Estimated Tax - Self Employed

Hello,@PaulaViner.

 

Let me share additional information on how QuickBooks calculates your estimated taxes.

 

Using simplified expenses, your self-employment taxes are base on the following:

  • Projections based on your recorded business-related income and spending
  • allowable expenses 
  • the information you have set up in your Tax Profile.

Just make sure to categorize your transactions correctly so you'll have an accurate estimated taxes. Also, you can review the information entered in your Tax Profile settings. You can refer to this article for more insights: How QuickBooks Self-Employed calculates tax payments.

 

Alternatively, I'd recommend consulting with your accountant so you'll be guided in selecting the proper categories for your transactions.

 

To learn more about self-employed taxes, you can check these articles to learn more: 

Let me know if you have other questions. I'm always here to help.

View solution in original post

13 REPLIES 13
EmmaM
QuickBooks Team

Estimated Tax - Self Employed

Hello Paula

 

The estimated tax on the dashboard shows the estimated amount of taxes that you would have to pay. If you go to taxes>in the self assessment summary will give you the actual figure for the Self Assessment so far.

 

 

Emma

PaulaViner
Level 1

Estimated Tax - Self Employed

Hi there

 

Thanks for your reply.  I have looked and see that the figure in my self assessment is the same as the estimated tax, however, this is over a third of what I have invoiced  and is a very different figure to the one that I have seen on other tax calculators.

 

Paula

IamjuViel
QuickBooks Team

Estimated Tax - Self Employed

Hello,@PaulaViner.

 

Let me share additional information on how QuickBooks calculates your estimated taxes.

 

Using simplified expenses, your self-employment taxes are base on the following:

  • Projections based on your recorded business-related income and spending
  • allowable expenses 
  • the information you have set up in your Tax Profile.

Just make sure to categorize your transactions correctly so you'll have an accurate estimated taxes. Also, you can review the information entered in your Tax Profile settings. You can refer to this article for more insights: How QuickBooks Self-Employed calculates tax payments.

 

Alternatively, I'd recommend consulting with your accountant so you'll be guided in selecting the proper categories for your transactions.

 

To learn more about self-employed taxes, you can check these articles to learn more: 

Let me know if you have other questions. I'm always here to help.

awsduncan
Level 2

Estimated Tax - Self Employed

I've also found the the estimate tax is massively inaccurate. Any idea how it's calculated in quickbooks?

Pabz_L
QuickBooks Team

Estimated Tax - Self Employed

Hello there, @awsduncan.

 

I’ve checked our records it seems we don’t have an open investigation about estimated taxes in QuickBooks Self-Employed. 

 

As mentioned by my colleague IamjuViel, some factors can affect resulting to inaccurate estimated tax. 

You’ll have to double-check if the tax settings and projections are entered correctly so the amount will be correct. 

 

Here's how:

 

  1. Click the Gear icon.
  2. Go to Tax profile.

 

 You can also check this as a reference: How QuickBooks Self-Employed tracks self-employment taxes.

 

Once it's all good, you can pay the estimated quarterly taxes if it's due already.

 

I'm just a post away if you have any follow-up questions. You can click the Reply button and I'll get back to you as soon as possible. Thanks.

awsduncan
Level 2

Estimated Tax - Self Employed

You should definitively investigate it. The estimates are highly inaccurate. Also the links you’ve posted are for taxes in the US rather than the UK. 

awsduncan
Level 2

Estimated Tax - Self Employed

BTW could you tell us a bit more about how quickbooks calculators tax due?

EmmaM
QuickBooks Team

Estimated Tax - Self Employed

Hello Wsduncan, More information on the Self Employed package and how it calculates the tax summary can be found here  Essentially based on the information you have added in your tax profile(including what you have used of your allowance if you are also employed) will then based on your income, spending and allowable expenses entered work out the tax summary including the income tax due.

sherylcookson
Level 2

Estimated Tax - Self Employed

My Tax Summary doesn't calculate any either. I have just been told by QBSE Chat Support that "The Tax summary will ONLY calculate if I am BOTH Employed & Self Employed" - surely this cant be right, can it??

To test this, i entered figures in the Estimated employment income & the Other Income fields in my Tax Profile - the outcome was the same, a £0 Income Tax showing in the Tax Summary Report,

How do you get it to work?

sherylcookson
Level 2

Estimated Tax - Self Employed

UPDATE: If I enter a lower than accurate figure (£9000 for example) in the Personal Allowance Amount field of my Tax Profile, I can get a figure to come up in the Tax Summary Report - Progress! Although I have no idea what its calculating, its certainly not right.

DebSheenD
QuickBooks Team

Estimated Tax - Self Employed

Hi there, sherylcookson.

 

I see the duplicate post of your concern. Let me route you to the link of your similar post where my peer answered and gave further information regarding your concern. Please check this link: https://quickbooks.intuit.com/learn-support/en-uk/other-questions/using-the-qb-self-employed-tax-cal...

 

Don't hesitate to post here in the Community if you have further QuickBooks concerns. I'll always around to help. Take care always. 

Huwcligs
Level 1

Estimated Tax - Self Employed

But how do I find my estimated tax bill figure on quick books

Ashleigh1
QuickBooks Team

Estimated Tax - Self Employed

Hello Huwcligs, thanks for posting on this thread, so you can see this in the taxes section, in the self-assessment summary .

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