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Frequent Explorer *

How do I categorise a payment to HMRC for our VAT liabilities?

Hello 

When I import the transaction from my bank for HMRC for our VAT liabilities, how should I categorise it?

I'm using Quickbooks online. 

Thank you 

Faye

Solved
Best answer 01-22-2019

Accepted Solutions
QuickBooks Team

Re: How do I categorise a payment to HMRC for our VAT liabilities?

Hello, Faye.

 

You can record it as an expense transaction, then post it under the VAT Suspense account. 

 

Here's how:

  1. Click the Plus sign (+) icon. 
  2. Choose Expense.
  3. Fill in the necessary fields.
  4. Click Save and close.

You can check the screenshot below.

 

Feel free to post in the Community if you have other VAT concerns. 

7 Comments
QuickBooks Team

Re: How do I categorise a payment to HMRC for our VAT liabilities?

Hello, Faye.

 

You can record it as an expense transaction, then post it under the VAT Suspense account. 

 

Here's how:

  1. Click the Plus sign (+) icon. 
  2. Choose Expense.
  3. Fill in the necessary fields.
  4. Click Save and close.

You can check the screenshot below.

 

Feel free to post in the Community if you have other VAT concerns. 

Frequent Explorer *

Re: How do I categorise a payment to HMRC for our VAT liabilities?

I've followed the advice given - how is this reflected in the VAT records? I can see figures for collected on sales and paid on purchases, but no adjustments. Should these payments show as adjustments or something else?

 

When it comes to doing my VAT return - is the overall figure what's left for me to pay, or do i need to manually subtract payments already made?

 

Many thanks in advance

Moderator

Re: How do I categorise a payment to HMRC for our VAT liabilities?

Hi, BecPeel.

Allow me to take over and provide you a little more information on how to record VAT in QuickBooks Online.

 

Normally, when recording VAT in QuickBooks Online, you'll need to Record/Mark as filed and the period where the refund came from. You can go through this recommended video for your reference: https://www.youtube.com/watch?v=MPa5EgfarkA.

 

Then you can record the refund if the period of VAT return is recorded in QuickBooks Online.


Here's how:

 

  1. Go to Taxes and click on the arrow next to View Return for the specific VAT period you need.
  2. Select Record Refund.
  3. At the top, select the bank account the refund has gone into.
  4. Make sure you've selected Refund under Payment Type.
  5. Enter the Refund date and amount.
  6. Add a memo if needed.
  7. Click Save.

Here's a helpful article for more details: How to record a VAT payment or refund [Video].

 

Keep me posted if you need anything else, I'll zip right back to you.

Frequent Explorer *

Re: How do I categorise a payment to HMRC for our VAT liabilities?

Hi,

 

Thanks for coming back to me.

I’m not sure i understand your advice. I haven’t had a VAT refund - I want to record an interim VAT payment that I’ve made – but haven’t yet completed the VAT return as I’m on an annual accounting scheme with quarterly payments.
Thanks

QuickBooks Team

Re: How do I categorise a payment to HMRC for our VAT liabilities?

Thanks for keeping us posted, BecPeel.

 

Allow me to join this thread and help bring more clarity to your concern about recording VAT in QuickBooks Online (QBO).

 

If you wish to record an interim VAT payment, you can follow the steps provided below. 

 

Here's how to record a VAT payment:

  1. Go to Taxes and click on Record Payment for the specific VAT period you need.
  2. At the top, select the bank account you've used to pay HMRC.
  3. Make sure you've selected Payment under Payment Type.
  4. Enter the Payment date and amount.
  5. Add a memo if needed.
  6. Click Save

You can refer to this article provided by my colleague for a detailed steps on how to record a VAT payment: How to record a VAT payment.

 

There you have it. Don't hesitate to reach back to me if I can be of any assistance. I'd be glad to help you some more.

Frequent Explorer *

Re: How do I categorise a payment to HMRC for our VAT liabilities?

Hi,

I got waylaid in doing this and trying to catch up now. I don't seem to have the option to record payment - whereabouts is this exactly?

thanks

QuickBooks Team

Re: How do I categorise a payment to HMRC for our VAT liabilities?

Hello BecPeel,

 

This option should be on the right hand side, next to the period you would like to record a payment for, where it would normally give you the option to submit - if that period has been filed or marked as filed.

 

Thanks,

 

Talia