Our bank statement shows a refund of £277.38 from HMRC for VAT. How do I enter it?

Good day, peter.

I can share some details and guide you on how you can record a refund from HMRC into QuickBooks Online.

When you receive a refund from HMRC for a VAT payment, you have to record it in QuickBooks Online so that it can be matched with the associated bank transaction. If money enters your bank account without being matched in QuickBooks, your books will not balance at the end of the year.

To do so, you can follow the steps below:

1. Go to Taxes and then hit VAT.
2. Choose the All returns ▼ dropdown menu, then pick the specific VAT period you need.
3. Click on the View summary ▼ dropdown menu, then Record Refund.
4. Select the bank account the refund has gone into.
5. Make sure you've selected Refund under Payment Type.
6. Enter the refund date and amount in the appropriate fields.
7. Add a memo if needed.
8. Once finished, hit Save.

You can also use this article as a reference if you need to enter a VAT payment to HMRC as well: Record a VAT payment or refund in QuickBooks Online.

For more helpful topics and relevant articles that will certainly help you with VAT-related concerns, feel free to visit this link: Value Added Tax.

If you still need my assistance or have other questions about taxes, let me know in the comments below. I'd be happy to help. Have a great day!