Thanks for coming back, More Than Just A Gardener.
We'll need to manually categorise your insurance and fuel in QuickBooks Self-Employed (QBSE). As always, since all businesses are unique, you may wish to reach out to your accountant for additional guidance on how to record them as disallowable. Also, actual expenses also known as the actual costs, this method will require you to keep detailed records of all your motoring costs for the year. You'll need to add up everything you've spent during the year and work out the business percentage/proportion of that. Which you can then claim as an allowable expense. These records may include:
- Insurance
- Fuel costs
- Vehicle tax
- Repairs and servicing
- MOT
Please take note of the mileage reading at the start of the accounting period when using this method. An example of it is to remember if you use your car for both business and personal purposes. You will only claim for the proportion of the costs that relate to the business use. Here's how to add and categorise vehicle expenses in QuickBooks Self-Employed:
- Go to Transactions.
- Choose Add transaction.
- Select Car/van expenses as the category.
- If you use your car for both business and personal purposes, categorise these costs as Business. Your tax pro will calculate the business/personal ratio in your tax return based on the total expense amount.
Car expenses and mileage are huge topics, but you can learn more from HMRC here. Feel free to visit our QBSE Help Article page for more insights about managing your business.
The Comments section below is the best place to ask questions or post any other concerns if you have any. Don't hesitate to give me a shout and I'll be with you right away.
