Hi, I can find the answer to this anywhere and would like to know the correct way to record iZettle payments to QuickBooks SELF EMPLOYED in the UK
iZettle does not connect to QuickBooks self employed so I'm guessing I have to enter the transactions manually, not a problem (although a lot of work)
is this correct?
Enter full amount charged to client eg, Client Vicky £160 as "business income", enter a new transaction named iZettle fees £2.60 as an expense? if this is correct I'm struggling to find what category from the drop down menu I class the iZettle fee as, could someone please advise?
The other option I have is to wait until the money hits my bank (this will be a mix of different transactions minus the iZettle fee), QuickBooks will auto pic this up from my bank account and I can just record it as "customer payments" under "business income" however it will not show a brake down of transactions and fees, is this acceptable to HMRC or do they need a brake down of all of this?
Thanks in advance for any help
Welcome to the community,
Yes you are correct you are unable to add any apps like iZettle in Quickbooks Self-Employed you can only add apps like iZettle in our Small business products.
Thank you. Within the self-employed product - how do I account for the fees taken off by iZettle when an invoice has been paid in full but I only receive payment minus fees from iZettle into my linked bank account?
Hi there, @joesharps.
Allow me to share some insights about tracking payment fees from iZettle in QuickBooks Self-Employed.
QuickBooks Self-Employed ensures that your business transactions are categorised accurately. To track the entry from iZettle, you may wait until the amount will hit into your bank account so this can be recorded. Just make sure that it's connected to the system, so it will be categorized as Business Income once you've created a rule.
However, when it comes to recording the fees, you may categorize them as Business Expense. I'd also recommend keeping all your transaction details for audit purposes in HMRC.
You can always visit these resources below to help you in adding and categorising your entries properly in QBSE:
Let me know if you have any other questions. I'm here to provide further assistance at any time. Have a good one.
Thank you. Does QB Self-Employed UK account for Invoices or only TRANSACTIONS through the bank? I ask this because iZettle take the money at source. If I produce an Invoice for £300 then iZettle will pay something like £295. If I mark off the invoice as paid- there is then a £5 deficit to account for - which will need to be added manually each month from an iZettle report.
However- if QB only takes into account bank transaction and Invoices are separate to the accounting section- then I do not need to add any further transaction and can just keep my iZettle reports for HMRC.
Hello Joesharps👋, QB Self-Employed only accounts for transactions added in the transaction section so in terms of sales/ fees if you receive an amount in the transactions section and account that as a business income it would just be a case of adding a 2nd transaction to account for the fees you incur(if they are also coming out of the same bank account). In terms of the invoice, you would create for full amount because it is just for the purpose of sending the customer it does not affect any calculations in the product,