Hi @labrydog
The saying 'never mix business with pleasure' should also apply to bank accounts.
For a Sole Trader it's almost impossible but he really should try to keep things as separate as possible. It can get really messy if/when the VATman decides to have a delve through the records.
Personal expenditure should really be entered as Drawings if it's taken from the business account & not returned. That way, they can be dealt with properly at the end of the tax year.
Use NoVAT code to keep these transactions off the VAT Return completely.
The VAT Refund should be entered into QBO via the Taxes/VAT screen - that way it will hit the correct account(s). It isn't Income as such (or Other Income) - if entered correctly QBO will show the refund from VAT Suspense account (with NoVAT code as it should definitely not be recorded on the VAT Return).
Hope this helps.
