Frequently Asked Questions:
What if I don’t know which HMRC category a certain expense should go under?
That’s okay. You can either tag it to the best of your ability or leave it blank and ask us when it’s time to file your Self Assessment. We’ll be happy to give you some advice on this when the time comes.
What if I have an expense that can be put under multiple categories?
This happens often. Eating out for business is a classic example of this, as the expense can be categorised as Marketing, Entertainment or Travel. In these instances, tag the expense to the best of your ability or leave it blank until it’s time to file your Self Assessment, when we’ll help you determine which category the expense should go under.
Are there any HMRC categories I shouldn’t use?
No. If there are business expenses that belong in a category, then we recommend that you put them there. There are, however, categories from which HMRC disallows expenses. For instance, business entertainment has a very limited amount of claimable expenses. Read more about confusing expenses here, and about travel and food expenses here.
What does ‘cost of goods bought for resale’ mean?
If you run a business where you make a physical good, you’ll need supplies. For instance, if you were a sculptor, you’ll need various materials like clay, wood and metals. These cost money and would fall under the ‘cost of goods bought for resale’ HMRC business expense category, as you’re selling them, just in a different form – art.
What if I don’t want to buy a plan and just want my expenses?
While we’d recommend carrying out your Self Assessment through Finmo, it is possible to get your data exported if you decide to go down another route. This will be in .csv file format (or .xlsx or .pdf if you’d prefer). Along with your transactions, descriptions, dates and tags, we’ll also provide the HMRC categories if applicable. We can do this for £25 + vat – just email us at email@example.com to get started. The reason we recommend doing your Self Assessment with us, though, is because we’re able to offer on-hand expert advice throughout the process, and can help you optimise your taxes fully at a fraction of the usual accountancy cost. Want to chat it through? We offer a free consultation to anyone who’s interested.