Categorising VAT contributions

I'm glad to see you in the Community, RobB81.

Let's use the Split feature to record the transactions in QuickBooks Online (QBO). This way, we can track the sales tax and other remaining amounts. I'm here to help walk you through the steps.

Before performing the troubleshooting steps, I suggest consulting your account for the specific transaction type to use for the other amount. They can also guide you on the category type to use for the entries. Once you have the information handy, follow the steps below to split them.

Here's how:

1. Head to the Banking or Transactions menu on the left panel and choose the Banking tab.
2. Press the Blue tile icon and select the account you're working on.
3. In the For review tab, look for the entry and click on it to view more details.
4. Tap the Split button to open the Split transaction window.
5. Fill in the fields with the correct information.
6. Input the details for your sales tax and the reserve amount.
7. Click Apply and accept to keep the changes.

For more details, the following resource will guide you on how to classify downloaded bank data, split transactions between multiple accounts, exclude personal or duplicate entries, to name a few: Categorise and match online bank transactions in QuickBooks Online.

You can go over the links below for additional resources. These articles contain topics on how to handle any banking-related activities such as reconciling an account, adding deposits, managing your bank feeds, and sales taxes.

• QBO self-help articles
• Taxes
   

Stay in touch if you have other questions or concerns about recording transactions and VAT in QBO. I'll get back to make sure this is taken care of for you. Have a great day ahead.

Thanks for the reply,

I'm not sure if that's what i'm looking to do.

Lets say up to todays date my accounts show the amount due for this quarter of VAT  to HMRC is £500

I want to keep that £500 in a separate account and want to know how I record that in quickbooks.

Hi RobB81 Have you, or are you going to physically/in real life transfer this amount to another account to make the payment to HMRC?

No it will be paid digitally when the time comes to pay it. I literally just want to keep it seperate from my main business account.

Hi RobB81, you can create a new chart of account to post the payment against however we'd recommend reaching out to an accountant if you're unsure on which account-type to use.

Hi Paul,

Yes that's quite right, the space is just a sub account of the main business account. So I have transferred it from my main account into the sub account.

Then I have created a savings account and named it VAT contributions in QB and directed it as a transfer in QB.

That's exactly what I was after, many thanks.

Rob.