Other Questions

Welcome to the Community, @spsue.

You'll have to create a 100% VAT Expense if you'd like to claim back the VAT. Let me guide you through the steps.

1. In your QuickBooks Online (QBO), click the + New button and select Expense.
2. Choose the vendor (HMRC) in the Payee drop-down.
3. Enter the payment date the amount was debited from your account.
4. In the Amounts are drop-down, select Exclusive of Tax.
5. Select purchases or another expense account from the Category column.
6. Enter 0.01 in the Amount column, then select 20.0% S from the VAT column.
7. On the second line, use the same expense category and enter -0.01 in the Amount column.
8. Select Exempt or No VAT from the VAT column.
9. Then, enter an amount in the VAT box and Save and close.

Once done, it'll help you create a 100% VAT transaction.

Most importantly, I still recommend checking with your accountant. This way, they can give you some advice on what VAT codes to use base on your recording practices.

Please feel free to keep in touch with me here if you have other questions with VAT returns. I'm always around if you need any help.