Certain transactions are being logged as 'disallowable'. For example:
- AirBnb correctly categorised as 'Travel Expense' is disallowable
- Train tickets from TrainLine correctly caterogised as 'Travel Expense' is disallowable.
However, some other transactions for the same companies, for the same categories, are allowable.
Thanks for posting to the Community, @Raphy.
Let me 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 will depend on the mileage you drive.
Using this method, you're unable to claim vehicle insurance, repairs, and servicing, or fuel costs. You can declare 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, review this article: About Car, Van, and Travel Expenses.
The expenses that can be tagged as allowable are deducted from your taxable profit under the SA103F categories. However, disallowable expenses are transactions that can't be deducted from your business income. For more details, you can check out these helpful articles:
You can also consult your accountant if you need professional advice in categorising transactions.
Feel free to post a comment below if you have more questions. I'll be around to help. Stay safe and well!
Hi @Jovychris_A ,
Thank you for the copy and paste response that I could have found on many other threads. Unfortunately, it doesn't address my questions even a little bit.
"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."
I know this, and have specified in my question that I have correctly categorised my transactions as 'Travel Expense'.
Now answer my question: why is this showing up as disallowable?
Thanks for your prompt response, @Raphy.
It's because QuickBooks Self-Employed (QBSE) uses the simplified expense method that I posted a while ago. You may check and ensure to tag these transactions as a Business type expense so that you can successfully show it as an allowable cost.
If this is already tag and categorise that way, I'd recommend reaching to our chat support for QBSE. They have tools to help review the expense entries. They can also investigate this further via screen share and part the best fixes.
Here's how to contact them:
Please let me know or share us if you need further assistance. I'm always here to help. Take care!
Your help scheme access doesn't work if you are UK based as I get into a perpetual loop leading me to the US site - hopeless when I have a UK tax question about disallowed travel expenses