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RobB81
February 15, 2022
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Categorising VAT contributions

  • February 15, 2022
  • 2 replies
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I would like to know how I can categorise payments I want to put aside for paying my quarterly VAT return.

Below I have transferred £500 into a seperate starling space for VAT contributions, but unsure on how I record it in quickbooks.  

 

 

Best answer by paul72

Hi @RobB81 

 

Very simple. It's not an expense yet.

Record as Transfer.

 

You will need to create a new Bank-type account for the transfer to be sent to.

 

It's probably not even necessary to recreate this in QB because the money isn't actually going anywhere.

(a Starling Space is not actually a separate account - it's more like a sub-account of the main account).

 

In your Chart of Accounts, create a new Bank Account (this can be a current or savings account in QB, it doesn't really matter).

If you want it to be able to see the total in your Starling account (including VAT Space), set it as a Sub-Account of your main current account.

If not, leave it as a separate account in QB.

 

The payment from current to VAT Space is a simple bank transfer ... New > Other > Transfer if you want to enter manually rather than through the bank import/reconcile.

 

Hope this helps.

 

2 replies

R
Rasa-LilaM
February 15, 2022

I'm glad to see you in the Community, RobB81.

 

Let's use the Split feature to record the transactions in QuickBooks Online (QBO). This way, we can track the sales tax and other remaining amounts. I'm here to help walk you through the steps.

 

Before performing the troubleshooting steps, I suggest consulting your account for the specific transaction type to use for the other amount. They can also guide you on the category type to use for the entries. Once you have the information handy, follow the steps below to split them.

 

Here's how:

 

  1. Head to the Banking or Transactions menu on the left panel and choose the Banking tab.
  2. Press the Blue tile icon and select the account you're working on.
  3. In the For review tab, look for the entry and click on it to view more details.
  4. Tap the Split button to open the Split transaction window.
  5. Fill in the fields with the correct information.
  6. Input the details for your sales tax and the reserve amount.
  7. Click Apply and accept to keep the changes.

 

For more details, the following resource will guide you on how to classify downloaded bank data, split transactions between multiple accounts, exclude personal or duplicate entries, to name a few: Categorise and match online bank transactions in QuickBooks Online.

 

You can go over the links below for additional resources. These articles contain topics on how to handle any banking-related activities such as reconciling an account, adding deposits, managing your bank feeds, and sales taxes.

 

Stay in touch if you have other questions or concerns about recording transactions and VAT in QBO. I'll get back to make sure this is taken care of for you. Have a great day ahead.

 

R
RobB81Author
February 16, 2022

Thanks for the reply,

 

I'm not sure if that's what i'm looking to do.

Lets say up to todays date my accounts show the amount due for this quarter of VAT  to HMRC is £500

I want to keep that £500 in a separate account and want to know how I record that in quickbooks.

 

 

 

P
payment after leaving
February 16, 2022

Hi RobB81 Have you, or are you going to physically/in real life transfer this amount to another account to make the payment to HMRC?

paul72
paul72Answer
February 17, 2022

Hi @RobB81 

 

Very simple. It's not an expense yet.

Record as Transfer.

 

You will need to create a new Bank-type account for the transfer to be sent to.

 

It's probably not even necessary to recreate this in QB because the money isn't actually going anywhere.

(a Starling Space is not actually a separate account - it's more like a sub-account of the main account).

 

In your Chart of Accounts, create a new Bank Account (this can be a current or savings account in QB, it doesn't really matter).

If you want it to be able to see the total in your Starling account (including VAT Space), set it as a Sub-Account of your main current account.

If not, leave it as a separate account in QB.

 

The payment from current to VAT Space is a simple bank transfer ... New > Other > Transfer if you want to enter manually rather than through the bank import/reconcile.

 

Hope this helps.

 

R
RobB81Author
February 22, 2022

Hi Paul,

 

Yes that's quite right, the space is just a sub account of the main business account. So I have transferred it from my main account into the sub account.

Then I have created a savings account and named it VAT contributions in QB and directed it as a transfer in QB.

 

That's exactly what I was after, many thanks.

Rob.

 

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