Three tax calculations to help you at tax time

Worry less during tax time by tracking your National Insurance contributions, work-from-home deductions, and mileage in QuickBooks Self-Employed.

1. National Insurance contributions calculations

   You usually pay 2 types of National Insurance if you’re self-employed:

   • Class 2 if your profits are £6,025 or more a year
   • Class 4 if your profits are £8,164 or more a year

   Save yourself a headache at tax time by tracking your contributions in QuickBooks Self-Employed.

   Set up your Tax Profile on the mobile app, or on the web, to start tracking.

2. Automatic work-from-home deductions

   If you use your home for your self-employment work, you may be able to claim a deduction. Just like mileage deductions, QuickBooks Self-Employed uses the simplified expense method to calculate the deduction for you.

   To track your work-from-home deductions, set up your Tax Profile in QuickBooks Self-Employed.

3. Automatic mileage tracking in the mobile app

   HMRC allows you to claim mileage or expenses for business use of your car. But you don’t have to enter your mileage manually to QuickBooks Self-Employed (although you can, if you really like typing).

   How it works

   We use your location to track your trips automatically using the simplified expense method. The simplified expense method means a flat rate is applied to the miles you drive.

   For cars and goods vehicles, the flat rate changes from 45p to 25p after 10,000 miles. But you won’t need to worry about that, because when you pass that threshold, QuickBooks automatically updates and starts tracking at the new rate. (Although, if you’re a motorcyclist, the flat rate is always 24p, regardless of your mileage).

   Set up automatic mileage tracking.

   • Read more about car, van, and travel expenses.
   • Wondering about the difference between the flat-rate mileage deduction and actual expenses or capital allowances? Find out more.

Don’t forget…

If you snap and store your receipts and send invoices using QuickBooks Self-Employed, we’ll work out how much income tax you owe.

• Read more about how to send an invoice and upload receipts using your mobile camera.

Sign in to QuickBooks Self Employed