Last week we released an update to make managing your expenses even easier.
Keeping track of your business expenses is more than just an exercise to keep HMRC happy. It directly impacts how much tax you pay.
Missed expenses = missed tax savings. So, we wanted to make it quicker and easier for you to categorise every single one of them, accurately.
Recategorising similar transactions
Whether you’re using a Coconut current account or have another business account connected to the app, we automatically categorise everything for tax for you. But sometimes you need to change the category, or confirm the right VAT rate.
Previously you’d have to do that for each and every transaction which we know can be a pain, and even lead to some being missed. So now, when you change a category, or VAT rate, we’ll look for similar transactions and you can apply the same changes to them in one go.
Identifying business expenses
When you use your Coconut current account, or connect another bank account or credit card to Coconut and tell us it’s used for business, we know to categorise everything for tax on your behalf.
But it’s a little more complicated if the account you connect and use for business is also used for personal use. In this case not everything will be tax deductible and so we need a bit of input from you to get it right.
This is where we’ve made it easier for you to quickly identify which are allowable business expenses, so we can capture them correctly in your tax estimate for you.
We used to just categorise everything as personal and give you the option to reassign it to the correct tax category if needed. But now, we simply ask you to confirm whether it’s a business expense or not.
If it’s not, we’ll mark it as personal. If it is, we’ll do the hard work for you and automatically assign it to the correct tax category. We’ll also then know to take it into account in your tax calculations.
One more thing…
Depending on your account type, you may also start seeing a ‘Requires attention’ flag against some of your transactions.
If you see this, just tap into the transaction and tell us whether this is business related or not, or confirm the VAT rate.
We hope you enjoy this update. As always, we’d love to hear what you think! Has this update made it easier for you to keep on top your bookkeeping?