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Moike
Level 1

How do I prevent a personal loan to the business from appearing as sales on my VAT return?

I have created an "owners equity account" with zero VAT to allocate the loan funds to but the amount appears on my VAT return as sales and is included in the VAT repayable. I also tried categorising it as "non- current liabilities > shareholder notes payable" but it is still included in the return.

 

Any help would be appreciated as I have  a return due!

 

 

 

 

3 REPLIES 3
AbegailS_
QuickBooks Team

How do I prevent a personal loan to the business from appearing as sales on my VAT return?

You have me to help you manage your expenses in QuickBooks Online (QBO), @Moike

 

Let's review your account details and ensure that it's not associated with any of your sales tax. 

 

Since mixing personal and business funds sometimes happens, you can record it in QuickBooks. After that, you can reimburse the company. Here's how to do it.

  1. Select + New.
  2. Choose Check or Expense.
  3. Click a Payee from the dropdown ▼ menu.
  4. Tap the Bank Account, Cash Account, or Credit Card you used to make the purchase.
  5. In the Category details section, select the dropdown menu ▼ to select the tax category that fits your need.
  6. Enter the Amount of the purchase .
  7. Select Save and close or Save and new.

 

For more detailed steps, you can check out this article: Pay for personal expenses from a business credit card or bank account

 

I'm adding these articles for your reference:

 

Post again if you need more help. We'll respond as soon as we can.

Moike
Level 1

How do I prevent a personal loan to the business from appearing as sales on my VAT return?

Hi, thanks for your reply however it doesn't address the issue. I am not trying to reconcile a personal expense.

 

I have deposited funds into the company's bank account by way of a personal loan and the funds are appearing in the sales figures and being added to my VAT return. I have tried the two methods outlined previously and made sure the funds are categorised as 0% VAT however they are still included in the VAT return as VAT due on sales.

Ashleigh1
QuickBooks Team

How do I prevent a personal loan to the business from appearing as sales on my VAT return?

Hello Moike, thanks for coming back to us here, you would need to change it from 0% VAT to NO VAT for it not to appear on the return for you. 

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