Hi there, @JamesVTT. I'm here to lend you a hand and provide the steps you need to record your refund from HMRC.

Have you created the bank deposit and selected a VAT code or did you select NO VAT on the bank deposit? If you select NO VAT then it will not appear on VAT return and it will not be taxed as it is a bank deposit. If you do not want it to show on the p and l you can use an equity account instead of an income account to post the deposit to. Again we'd suggest consulting an accountant as we're not trained accountants we can only advise how the product works.

If you have any trouble with any transactions in QuickBooks, please let me know and I’ll do everything I can to help here in the Community!