Hi, i have just signed up for QBs Self employed... i have spoken with an online Chat person, but I'm still not totally convinced i have the correct answer. My Question is : How do I record Income from my PAYE employer which is taxed at source, and also record Income i earn as a freelancer/Sole trader (Self assessment) within QB Self employed Online Software, correctly.
I have been told i simply need to put the PAYE income in as 'personal' .... as I'm new to this i feel this just isn't accurate.... but i may be wrong.
Can anyone else shed light on this? i have seen some posts a year or so ago... but the answers tend to end in, 'we recommend you speak with an accountant'. or they sort of loop back round to something ambiguous.
Is there a Category for Business that shows the income is already Taxed/NI paid ect?
Thanks in advance.
Solved! Go to Solution.
Hello 01king1. Has the PAYE income taken you over the tax-free personal allowance amount? Essentially it would be something you would enter in the cog>tax profile (more info on that here) in the personal allowance amount change it to zero, If you have used the full amount. You can adjust the amount if you have part of the allowance left and it will only then start tracking income tax when the allowance amount is used. If you were withdrawing money from the business for your own wages it would go down as owner withdrawal. You would not include the PAYE income as income to the QBSE business itself but yes you would adjust the tax profile itself. Regarding NI you can in the tax profile set up the class you are for the business. Any further questions on this just reply back to this post. We do have to add it is best to speak to an accountant as we are not accountant trained or HMRC. We can't give advice but we can advise how the product works.
Hello 01king1. Has the PAYE income taken you over the tax-free personal allowance amount? Essentially it would be something you would enter in the cog>tax profile (more info on that here) in the personal allowance amount change it to zero, If you have used the full amount. You can adjust the amount if you have part of the allowance left and it will only then start tracking income tax when the allowance amount is used. If you were withdrawing money from the business for your own wages it would go down as owner withdrawal. You would not include the PAYE income as income to the QBSE business itself but yes you would adjust the tax profile itself. Regarding NI you can in the tax profile set up the class you are for the business. Any further questions on this just reply back to this post. We do have to add it is best to speak to an accountant as we are not accountant trained or HMRC. We can't give advice but we can advise how the product works.
Thank you for taking the time to get back to me, same day too, (a lot more impressive than some other services I've used).
I did manage to find a post that explained in part what you have suggested here, so I have entered my PAYE wage to the Tax Profile as you recommended and it is entered as Personal income when it appears in my transactions. I will need to re read what you have mentioned regarding the 'allowance', (thank you for that link i will take a look), currently I have left that at the default value 12570...as I currently don't know what it refers to or is used for.... but... I will swat up and change it to zero once i understand further.
Again thank you for taking the time out of your day to give me some pointers here. Trying to balance two jobs is tricky enough ;)
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