Capital Allowance Expenses

Forum|Forum|2 years ago
January 1, 2024
2 replies
13 views

Hello,

Is there way to categorise capital allowance expenses? I can't find it in the categories..

Thanks,

James

QuickBooks Self-Employed

Ashleigh1

Level 14

Hello James SW, thanks for posting on the Community page, capital allowance, would have to be entered in on the actual self-assessment form you fill out on HMRC website. You can't enter it in QuickBooks self-employed, that's why you don't see a category for this.

Martin WoodsUK

This seems like a major flaw in the software. Obviously self employed people buy vans and tools etc so should be able to record them as capital expenditure in the app.

James SWAuthor

I agree, this is quite a major flaw.

To get around this, I have included all my capital expenses alongside my expenses, but I created a 'Capital Expense' tag (which wasn't as straightforward as you would imagine). When it came to completing my tax return, I had to do some calculations to deduct the Capital Expenses total from the expense total etc. A bit of a faff really and I never thought I would have to find a workaround for paid software. Capital expenses are pretty fundamental to every business and I'm very surprised there is no obvious way to track these.

Have you come across any other companies that do offer this?

SPYDOR

There is a guide on how to record Capital Assets here: Setup Capital Asset in QuickBooks Online

I have just created a detailed guide on how to do this, including how I split the entries between personal and business use. Also includes tips on asset types and how to add the asset, depending on whether you are using Annual Investment Allowance (AIA) or Writing Down Allowance (WDA). You can see my post here: Setup Capital Allowance journal entry in QuickBooks Online

Sign up

Login with SSO

Let's get you signed in

Login with SSO