Skip to main content
May 5, 2021
Question

Best practice for managing VAT payments

  • May 5, 2021
  • 1 reply
  • 0 views

Hopefully just a quick one. In the banking section, when a client pays VAT owed to HMRC (for example - this could also be a refund) and you see the transaction going out of the bank, is it best to:

A). record the transaction as an expense in the VAT Suspense account, or

B). create a VAT payment in the taxes section and match the transaction to that payment?

 

I am looking through the books for a client and it looks like both have been done in the past. 

 

Many thanks for help.

 

1 reply

November 7, 2021

I would of thought you would put it on as a bank payment to their HMRC account