Thank for sharing a screenshot, Geetika Khanna.
Based on the details you've provided, two possibilities might happen on the overpayment to HMRC. It's either they'll provide a refund or inform you to apply it on your next return as a credit.
If you receive a refund, you can record it by following the steps below:
However, if you'll apply this credit to your next return, you can create a VAT Adjustment. Here's how:
Once done, let's record the VAT adjustment and select the account you've previously used in the expense transaction. Here's how:
I'm including articles that provide more details about VAT payment:
If you're unsure what account to use, please reach out to your accountant for the best advice.
Let me know if you have other questions about QBO. I'm always glad to help. Have a good day!