Question

disallowable expenses

Forum|Forum|7 years ago
November 5, 2018
2 replies
7 views

Under the rent and utilities category I have been inputting hall hire and car insurance all for my business, in QB I have £3000 (est) of these disallowed? I don't understand why this is ,is there a limit to how much you expenses you can have in each category? This is the same in my advertising category?

QuickBooks Online

qbteachmt

Level 11

While there is no Limit on expense categories, there are types of expenses that are not business, or are not reportable, and this depends on your business operations, your entity type, and the local regulations that apply.

For instance, if "hall rental" is for a wedding planner or event manager, of course these rental expenses are business related.

Car insurance might be a different consideration. For examples:

A Floral Delivery service has an exclusive business use vehicle, and it likely is owned by the business entity. Your own personal vehicle with mixed use isn't the same rules.

You should always work with your own accountant to confirm the specific operations and the data are managed properly for your tracking and reporting needs.

K

KR3Author

That is helpful thanks, but if I know the hall rent is claimable how to I adjust it so that QB accepts it rather than disallows it?

M

mandi1

I currently have the same issue. Did you manage to find a solution?

@KR3 wrote:
That is helpful thanks, but if I know the hall rent is claimable how to I adjust it so that QB accepts it rather than disallows it?

Kristine Mae

Moderator

Hello there, KR3 and HayleyPT.

Hall hire and car insurance should fall under travel expenses. This way, it will be counted as allowable expense. There are costs that you can claim as allowable expenses. This means, the limit (threshold) is set by the HMRC.

Please check thhis article as your reference: https://www.gov.uk/expenses-if-youre-self-employed.

If you have other concerns, please drop a comment below.

V

VinayPatel

Hi there,

I'm having a similar issue with proportion of utilities/rent for using my home as an office. I think it's stopped the allowable expenses at the flat rate (simplified expenses) whereas I'm calculating it fully. Is there a way to adjust QuickBooks to allow these expenses?

Thanks,

Vinay

Angelyn_T

Moderator

Hello there, @VinayPatel.

Allow me to join the thread and help share information about simplified expenses in QuickBooks Self-Employed.

QuickBooks Self-Employed uses the simplified expense method to calculate a deduction for you if you perform your self-employment work from your home.

The simplified expense method uses a flat rate based on the hours you work from home each month. With this method, you don't have to calculate the business-to-personal proportion of home expenses. You can use the flat rate deduction if you work for 25 hours or more a month from your home.

If you want to claim for 'work from home' under the simplified expenses method:

Go to the Gear icon.
Select Tax Profile.
Enter the number of hours under Do you work from home?.

If you enter 25 or more, we automatically know the amount you can claim and record that amount in your tax report If you want to claim the actual costs and not use the simplified method, then leave the field blank and keep categorizing your bank transactions as per normal.

You may consult your accountant if you have any other questions. You can also check the HMRC website for the current flat rate deduction amounts and examples.

You can also check these articles for additional reference:

Please know that I'm always here to help you if you have any other expenses concerns, I'll be right here to help you. Have a good one!

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