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KR3
Experienced Member

disallowable expenses

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?

17 Comments
Established Community Backer ***

Re: disallowable expenses

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.

KR3
Experienced Member

Re: disallowable expenses

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?

Active Member

Re: disallowable expenses

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?


 

Established Member

Re: disallowable expenses

i am having the same issue. Can somebody from the QB team please answer this question?

 

Established Member

Re: disallowable expenses

I am having the same issue. Can somebody from the QB team please answer the question?

QuickBooks Team

Re: disallowable expenses

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. 

Established Member

Re: disallowable expenses

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

QuickBooks Team

Re: disallowable expenses

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:

 

  1. Go to the Gear icon.
  2. Select Tax Profile.
  3. 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!

Experienced Member

Re: disallowable expenses

Hi, sorry to jump on this thread - but was there an answer as to why hall hire comes under travel expense?? I'm trying to classify hall hire, washing machine usage, storage unit rental under the 'Rent/Utilites/Insurance' category, but it's all showing as disallowed? I can't put all that under travel expense? Bit confused.

QuickBooks Team

Re: disallowable expenses

Thanks for joining this thread, @Cam33

 

Allow me to share some information about the categories that are showing under travel expenses. 

 

QuickBooks Self-Employed uses the Simplified Expenses (with flat rates) method to calculate the allowable business expenses for your car, van, or motorcycle. The rate is based on the mileage you drive.

 

Using this method, you can't claim vehicle insurance, repairs and servicing, or fuel costs. You can claim all other travel expenses in addition to your simplified expense amount. 

 

You'll categorize a transaction as travel expense when it's your train, bus, air, and taxi fares, as well as lodging and food costs while traveling overnight. Then, car/van expense if it's vehicle expenses like insurance, repairs, servicing, fuel, and parking. For more information, see this article: About Car, Van, and Travel Expenses

 

The SA103F categories that was tagged as allowable are expenses that can be deducted from your taxable profit. However, disallowable expenses are transactions that can't be deducted from your business income. For more details, you can check out this helpful article: About SA103F Categories

 

To properly categorize your hall hire, washing machine usage, and storage unit rental, I'd suggest consulting your accountant. This way, he can confirm if these categories are under the "Rent, Utilites, Insurance" category and if these are compliant to the HMRC requirements regarding expenses if you're self-employed

 

I'll be here if you have follow-up concerns about this or should you need anything else, @Cam33. Have a good day. 

Established Member

Re: disallowable expenses

Having the same problem as Vinay. I've got my work from home hours in my tax profile set as zero and have set up a rule, apportioning a percentage of my rent to home office, but it's still saying it's disallowable. How can I change that?

Established Member

Re: disallowable expenses

Having the same problem as Vinay.

I'm not using Simplified Expenses.

In my Tax Profile I have set my work from home hours as zero.

I've set up a rule to apportion a percentage of my rent to home office expenses, yet QB is showing it as disallowable.

How do I overcome this?

QuickBooks Team

Re: disallowable expenses

Hello

 

QuickBooks uses simplified expenses if you have set the hours worked from home to zero in the tax profile, can we ask what proportion are you wanting to appear in allowable and disallowable and what categories are you using in this split transaction? Are you able to send us a screenshot from the transactions page of an example you have allocated this way as well as one of the taxes summary?

 

 

Thanks

 

Emma

Established Member

Re: disallowable expenses

Hello Emma,

 

I've set the rule split for my rent to be 7% business, 93% personal under Home Office expenses.

Please see attached screenshots showing the relevant info.

Please let me know what I'm doing wrong & how to fix this so the expense is allowable.

Thank you.

QuickBooks Team

Re: disallowable expenses

Hello there, @zulugirl.

 

Allow me to share some resources on how QuickBooks Self-Employed handles tracking and categorizing of your Home Office Expenses.

 

When recording your home office expenses, there's no need to split the specific transaction. What you need to do is to make sure you're able to set your Tax Profile.

 

As soon as you transactions are downloaded from  your bank into QuickBooks, the system will automatically calculate your allowable and disalowable expenses base on the information you entered in your Tax Profile.

 

Also, I'd suggest consulting with your accountant so you will be guided accurately on the next step to follow when tracking and categorizing allowable and disallowable Home Office expenses.

 

You can always visit us here in the Community if you have other questions about  tracking your expenses in QuickBooks Self-Employed. I'm always here to help.

Active Member

Re: disallowable expenses

I have not put I work from home,  but even if I do  Quick Books are still saying my van expenses are disallowed on self assessment summary.  I am claiming the cost of the van, fuel, insurance and tax, the van is used only used for work.  Can you help?

QuickBooks Team

Re: disallowable expenses

Thanks for joining us here, christine007.

 

I would recommend reaching out to our chat support for QuickBooks Self-Employed. They will help you review the transactions and help with your van expenses. Here's how:

 

  1. Click Help in the upper-right hand corner.
  2. Click Contact Us
  3. Fill in Ask a question (or tell us what’s wrong), then select Continue.
  4. Select Chat.

If you're in the UK, please go to this link to reach out to them: https://help.quickbooks.intuit.com/en_GB/contact.

 

Visit us again in the Community if you have other questions.