HMRC payments

spm1801 · ‎April 05, 2023

Totally new to QB on-line. I'm self employed (sole trader), and I've just made payments to HMRC. How do I go about logging this in QB. Do I set up HMRC as a supplier and show as an expense, if so under what category?

Can someone please advise for me.

TIA

QueenC · ‎April 06, 2023

Allow me to chime in on this conversation and assist you in recording your income tax payments in QuickBooks Online, @spm1801.

In QuickBooks Online (QBO), yes, you can record your HMRC income tax payment both as an expense or as a check. When doing this, I'd suggest consulting your accountant to best assist you in what categories to use and for better recommendations on ways to record this.

To record it as an expense, please follow the steps below:

Click on the + New icon then select Expense.
In the Payee field, select the supplier which in your case, is the HMRC.
Select the account you used to pay for the expense in the Payment account field.
In the Payment date field, enter the date for the expense.
Select how you paid for the expense in the Payment method field.
You can enter a Ref no. if you want detailed tracking (optional).
In the Tags field, enter the preferred label to categorise your money.
Enter the expense info in the Category details section. Then, select the expense account you use to track expense transactions in the Category dropdown.
Fill up the other needed information.
When done, hit on Save and close.

Moreover, when you run reports in QuickBooks Online, you have the option to personalize their appearance and focus on the details that matters the most to you. To know how, feel free to browse through this article: Customize reports in QuickBooks Online.

Should you have additional questions about managing your tax payments in QuickBooks Online, please don't hesitate to reply to this post. I'll be willing to lend a hand. Have a good one.

View solution in original post

Kurt_M · ‎April 06, 2023

Welcome to the Community space, @spm1801.

If you already set up MTD for VAT inside your QuickBooks Online (QBO), you can easily manage payments that you've made to HMRC. I'll gladly input the steps below to get you going. To begin, here's how:

Go to Taxes and select VAT (Take me there).
Find the return you just filed, then select Record payment.
Add these payment details:

Bank account
Payment type
Payment date
Payment amount
Memo (optional)

4. Select Save.

5.Your return is now marked as Paid.

You can check your payment details under the Payments tab.

However, if you haven't yet set up MTD for VAT inside your company, you may want to do it now to utilize the steps I provided. Check this article for further guidelines: File your VAT return and record tax payments in QuickBooks Online.

Also, another way to get around this without having to set up things inside your account is to record the payment manually. See this article for more information: Manage VAT payments in QuickBooks Online.

Additionally, feel free to check this page to help you ensure your company data is accurate: Run reports in QuickBooks Online.

@spm1801, I'll be more than happy to have you here again if you have any additional QuickBooks. Please don't hesitate to leave a comment below. Stay safe, and have a good one!

spm1801 · ‎April 06, 2023

Thanks for your reply. However, please note that this is not VAT, just plain simple income tax to HMRC.

QueenC · ‎April 06, 2023

Allow me to chime in on this conversation and assist you in recording your income tax payments in QuickBooks Online, @spm1801.

In QuickBooks Online (QBO), yes, you can record your HMRC income tax payment both as an expense or as a check. When doing this, I'd suggest consulting your accountant to best assist you in what categories to use and for better recommendations on ways to record this.

To record it as an expense, please follow the steps below:

Click on the + New icon then select Expense.
In the Payee field, select the supplier which in your case, is the HMRC.
Select the account you used to pay for the expense in the Payment account field.
In the Payment date field, enter the date for the expense.
Select how you paid for the expense in the Payment method field.
You can enter a Ref no. if you want detailed tracking (optional).
In the Tags field, enter the preferred label to categorise your money.
Enter the expense info in the Category details section. Then, select the expense account you use to track expense transactions in the Category dropdown.
Fill up the other needed information.
When done, hit on Save and close.

Moreover, when you run reports in QuickBooks Online, you have the option to personalize their appearance and focus on the details that matters the most to you. To know how, feel free to browse through this article: Customize reports in QuickBooks Online.

Should you have additional questions about managing your tax payments in QuickBooks Online, please don't hesitate to reply to this post. I'll be willing to lend a hand. Have a good one.

spm1801 · ‎April 06, 2023

Thank you for this. Think I need to get some education on QB. I'm spending too much time doing financial stuff behind the scenes, instead of on the tools.

Carly warner · ‎August 01, 2024

I am reading the above to say we add HMRC as an “expense”? To pay the income tax to HMRC for a sole trader (no employees, just me)

John C · ‎August 01, 2024

Hi Carly warner Thanks for reaching out to us here on the Community. You could create a liability account with an opening balance for the amount of income tax due > create an expense and in the category column of the expense select the liability account that you created with the opening balance, ensure you have selected No VAT in the amounts are field and the date and bank account are the same as the bank you made the payment from.

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