Disalloable vehicle expenses.

I've come to share a few insights about disallowable (van) expenses and guide you on how to use mileage tracking in QuickBooks Self-Employed (QBSE), @Saintadjg.

QBSE uses the Simplified Expense method (with flat rates) to calculate the allowable business expense for your car, van, or motorcycle. Once an expense is not “wholly and exclusively” used for business purposes, it is Disallowable. Then, you can't claim it as a deduction to reduce your taxable income. To learn more about this, please see this article: Expenses if you're self-employed.

When you aren't using the mileage tracking feature in QBSE, you may categorise your van expenses (MOT, new clutch, brakes, and tyres) using the Actual Cost method as allowable ones. However, I would encourage you to consult with your accountant or tax pro to guide you further. This is to make sure your financial data is accurate when you hand it over to HMRC.

Then, whenever you're ready to use the mileage tracking feature in QBSE, you'll first have to set it up and add your vehicle info. Here's how to turn on the automatic mileage tracking feature in the QBSE app:

1. Open the QuickBooks mobile app.
2. Select the menu ☰ icon and then Mileage.
3. Choose Auto-tracking.
4. Turn on Auto-tracking.

Next is to set location permissions for your mobile device and add and manage your vehicles. For the step-by-step guide, please refer to this article starting with Step 3: Set up mileage tracking and vehicles in QuickBooks Self-Employed.

Once you're done, use the QBSE mobile app to automatically track your business miles. For the detailed steps, you can check out this article: Automatically track mileage in QuickBooks Self-Employed.

Also, to learn more about calculating your allowable expenses and business expenses for vehicles, I would encourage you to check out these articles:

• Check if simplified expenses could save your business money
• Simplified expenses if you're self-employed

Please don't hesitate to keep me posted in the comments of you have other mileage concerns and questions about managing your self-employed transactions in QBSE. I'm always ready to help. Take care, and I wish you continued success, @Saintadjg.