Before you start
Categories group your expenses in Profit and loss. Match each one to an HMRC category and your Making Tax Digital tax summary puts it in the right place.
- In Settings, open Expense categories, under Money. Or choose Categories on Money, Expenses.
- Choose New category, or open one to change it.
- Type its name under Category, and a Description (optional) if you like.
- Under Type, choose Money out (an expense) or Money in (other income).
- For money out, choose its HMRC category, such as Car, van and travel expenses.
- Choose Save category.
What happens next
Renaming a category changes it on past expenses too. Expenses whose category has no HMRC category count as Other business expenses on the tax summary.
Categories are never deleted. Choose Archive to stop using one: it stays on past expenses but can't be chosen for new ones. Bring back makes it usable again.
If something goes wrong
- “You already have a category with that name.”: use the one you have, or choose another name.
- “We couldn't save the category. Please try again.”: try again.
Who can do this
The owner and managers with Can see invoices, take payments and set prices.
Still stuck? Send us a message.