Hello!
I'm VERY new to this so please bare with me. I work as a Social Media Executive Full Time, and in August 2020 I started doing delivery driving for Just Eat as a second job.
I've just signed up for quickbooks and have connected my bank account to my account and now have all of my transactions.
The obvious transactions which are personal are fine. However, what do I say my regular income from my first job is? As that's not money coming from my self employed business if that makes sense?
Any help with this would be greatly appreciated!
Solved! Go to Solution.
I'm here to answer your questions, JackBrown91.
Your Estimated Employment Income is your self-employed income and any other income. We want to clear that if you're adding income in the estimated employment income from the Tax Profile section it'll only be there as something for you to reference when filling in the SA103F form on HMRC website. It won't affect the Tax Summary report or income tax calculation within the QuickBooks product itself.
The Tax Summary report includes boxes 15-47 of the SA103F .Box 47 being net profit. You can add any business income via the transactions section and that will impact the tax summary.
The QuickBooks product does not take PAYE into account it has not been made to deal with already taxed income.
We wanted to add some clarification on the correct process for accounting for P45 income within Self Employed. It is correct you would record it in the tax profile however it would be the personal allowance section you would adjust as the PAYE would affect how much allowance you have left.
If you have used up the allowance you can amend the figure in that personal allowance section to zero. This will then mean the income tax is calculated correctly.
You can review the information entered in your Tax Profile settings. And, the UK Business and Self-Employed Tax Centre also offer a lot of great information on being self-employed.
Feel free to leave a comment below if you have follow-up questions. I'm just right here anytime you need help.
Hello there, JackBrown91.
QuickBooks Self-Employed tracks your income and expenses from your self-employed work. Since it needs your tax bracket info to calculate your federal estimated quarterly tax payments, you'll have to enter your regular income under the tax profile settings. This gives QuickBooks your complete tax info so your estimates are accurate.
Here's how:
Also, QuickBooks includes business income when it calculates your estimated taxes. So you'll only have to categorise money that comes from self-employed as business. Please read this article for more information: Categorise Transactions In QuickBooks Self-Employed.
Please let me know if there's anything that you want us to help with. We're always right here to help you.
So where it says 'Estimated employment income' is that from my full time job, not my self employed one?
And is that the amount I'll make for a whole year after tax deductions?
Also, from linking my bank account, do I set any wages I've been paid as Personal instead of Business? As they're not anything to do with my self employment?
I hope this makes sense!
I'm here to answer your questions, JackBrown91.
Your Estimated Employment Income is your self-employed income and any other income. We want to clear that if you're adding income in the estimated employment income from the Tax Profile section it'll only be there as something for you to reference when filling in the SA103F form on HMRC website. It won't affect the Tax Summary report or income tax calculation within the QuickBooks product itself.
The Tax Summary report includes boxes 15-47 of the SA103F .Box 47 being net profit. You can add any business income via the transactions section and that will impact the tax summary.
The QuickBooks product does not take PAYE into account it has not been made to deal with already taxed income.
We wanted to add some clarification on the correct process for accounting for P45 income within Self Employed. It is correct you would record it in the tax profile however it would be the personal allowance section you would adjust as the PAYE would affect how much allowance you have left.
If you have used up the allowance you can amend the figure in that personal allowance section to zero. This will then mean the income tax is calculated correctly.
You can review the information entered in your Tax Profile settings. And, the UK Business and Self-Employed Tax Centre also offer a lot of great information on being self-employed.
Feel free to leave a comment below if you have follow-up questions. I'm just right here anytime you need help.
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