Add an expense

1. In Money, open Expenses and choose Add expense.
2. Choose the Category. For a new one, type it under New category and choose Add.
3. Fill in the Supplier, What for (optional), Amount paid (£) and the Date.
4. If there was VAT, enter it under VAT included (£, optional). Leave The VAT can be reclaimed ticked, unless it's for exempt or zero-rated items, business entertainment or private use.
5. Tick Capital goods (equipment or a vehicle kept for the business) if it's one of those.
6. If you have vans, choose the Van (optional) it was for.
7. Under Receipt (photo or PDF), choose the file.
8. Choose Save expense.

A supplier you've used before fills in its last category, VAT share and reclaim choice. Change any of them if this one's different.

What happens next

The expense counts in Profit and loss and the tax summary, and in your VAT return if you're VAT registered. Expenses shows one month at a time: use Previous month and Next month. Choose Receipt next to an expense to open its receipt.

Expenses for a van add up against it on the tax summary, under Mileage or actual van costs.

To remove an expense added by mistake, choose the bin next to it.

If your accountant corrects an expense's category or VAT, it shows under Changes from your accountant, with who and when.

Money going out on a bank statement can become expenses too. See Match a bank statement to invoices.

If something goes wrong

• “VAT can't be more than the amount.”: check both amounts.
• “Enter an amount in pounds.”: type the amount, like 24.99.
• Save expense can't be pressed: choose a category and enter the amount paid.

Who can do this

The owner and managers with Can see invoices, take payments and set prices. Accountants see expenses and can correct the category or VAT, but can't add or remove them.