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outpost33
Level 1

Non-taxable income: disability benefits

Hi,

I've been searching high and low for an answer to this question, but I just can't find any info.

How do you account for non-taxable state benefits (in this case disability benefits) that are paid into a current account that's used for business. Obviously ideally it would be paid into a separate account,  but this is not the situation.

My first idea was to create a dedicated equity account in the Chart of Accounts, but I'm unsure of this approach. Alternatively I thought one could use some kind of variation on a Petty Cash account?

Any insight that can be offered would be extremely helpful. I think this might be a question for an accountant but I do not have one to hand!

Many thanks!

3 REPLIES 3
Becky29
QuickBooks Team

Non-taxable income: disability benefits

Hello Outpost33,

 

Welcome to the community.

 

This is a type of Question that you will need to clarify with an Accountant unfortunately we're not qualified Accountants/Bookkeepers to advise of this.

 

We welcome any comments on this community thread that have been in the same situation.^Becky

 

outpost33
Level 1

Non-taxable income: disability benefits

Hi Becky,

 

Thanks for your response, unfortunately I don't have an accountant I can call on for this - I am in effect the accountant in this situation! 

 

I was hoping that someone in the community might be able to throw light on the question, I'm sure someone may have faced the same or a similar issue?

Ashleigh1
QuickBooks Team

Non-taxable income: disability benefits

Hi Outpost33, 

 

Your welcome, Any accountants that are able to offer help, would be great full Thanks, as we are not Accountants/Bookkeepers. ^Ashleigh 

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