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Level 2

VAT deferral COVID19 payments

Hi,

 

Does anybody know how we need to process the VAT payments on the COVID deferred VAT from March to June? As VAT gets filed using MTD do the payments need to go through the Taxes tab or can we do it another way? Does HMRC use the payments in MTD to reconcile our account?

 

Can we make multiple payments (i.e. 12 monthly instalments) from the "Record Payment" on the Taxes Tab?

 

Thanks

 

Solved
Best answer December 01, 2020

Accepted Solutions
QuickBooks Team

VAT deferral COVID19 payments

Hello Csacs100, It would not impact the taxes >view payments section only the chart of accounts themselves, so if you do want to view them there you would have to go to record payment on the return and record bit by bit when it is paid.😊

View solution in original post

5 REPLIES 5
Moderator

VAT deferral COVID19 payments

Hi there, @csacs100.

 

If you deferred VAT between March 20 and June 30, 2020, and still have payments to make. these are the things that you can do:

  • Pay the deferred VAT in full on or before 31 March 2021.
  • Opt in to the VAT deferral new payment scheme when it launches in 2021.
  • Contact HMRC if you need more help to pay.

In your case, I suggest contacting HMRC for guidance in processing the VAT payments on the covid deferred VAT. Check out this link to get their contact details: https://www.gov.uk/contact-hmrc.

 

For more information on how to pay VAT payments deferred, visit this great resource: Pay VAT deferred due to coronavirus (COVID-19).

 

If you have any other questions about this or if you need anything else, feel free to leave a comment below. I'll be around to help. Have a great day.

Level 2

VAT deferral COVID19 payments

Hi Mirriam,

 

Thank you for your response.

 

My question was on how to deal with the payments in QBO. We have already agreed a payment schedule with HMRC. 

 

Can we process multiple part payments (in our case 12 payments) through the "Record payment" link on the Taxes section against the balance or is there another way we have to do it?

QuickBooks Team

VAT deferral COVID19 payments

Hello csacs100, yes you can record the payments in that section, you do not have to enter the full amount you can enter each time what you are paying. The alternative would be setting up a recurring journal entry(cog>recurring transactions>new >transaction type>journal entry) with one line being the bank account reduction and the other being the VAT suspense decrease and not using the record payment(those are the sections the record payment hits). Any questions let us know.

Level 2

VAT deferral COVID19 payments

Thanks Emma.

 

If I setup a recurring entry will that flow through to the "View Payments" in the Taxes section?  At the moment I can go to the Taxes section and select "View Payments" for the relevant VAT period and see when I made the payments.  

QuickBooks Team

VAT deferral COVID19 payments

Hello Csacs100, It would not impact the taxes >view payments section only the chart of accounts themselves, so if you do want to view them there you would have to go to record payment on the return and record bit by bit when it is paid.😊

View solution in original post