I started QBO on 1 August. I have received a refund from HMRC on 7 August which relates to the July return.
How do I record the refund, which category do I attribute it to as at present I have only the VAT control account showing the VAT items input from 1 August onwards.
Thanks in advance.
Solved! Go to Solution.
Hello there, @M for TF.
Good to see you here in the Community. I can help walk you through on how to record a VAT refund from HRMC in QuickBooks Online (QBO).
To do this, please follow these steps below:
This will create a new transaction on your books. If you are adding transactions from your bank feed, you will need to record the VAT payment here first, then match it to the transactions on the Banking page.
This will get you on the right track. Feel free to leave a comment below if you have any other questions about recording VAT transactions in QBO. I'd be happy to answer them for you.
I can provide you with the reason, M for TF.
You're unable to allocate this against the VAT Suspense account since the tax has not been accounted for in QuickBooks.
As what John C provided, you'll record it as a deposit and use an income account since this is considered as money in. Here's how:
Once you're ready to file the form, I've got you the article on how to submit a VAT return.
If you have more questions, you can drop it below. We'll check your post from time to time.
"fill in the necessary fields"....
That is the bit though isn't it.
What fields are filled in and which allocations are made?
I see no reason why I can't allocate the amount to the VAT Suspense account for a date prior to my QBO start and reconcile that account to zero from 1 August (the date we start QBO).
I'll attach a screenshot to guide you, M for TF.
We're unable to recommend any income account. The account used in my screenshot is manually created. I'll show you how to create one:
As always, you can confer with your accountant on the best way to categorise the refund.
If there's anything else we can do, please let us know.