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PickleRick
May 27, 2022
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Catering for a VAT payment plan for several delayed VAT payments

  • May 27, 2022
  • 1 reply
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Hi all,

I have delayed several VAT payments during the last year or so. I now have a payment plan in place with HMRC to reflect this. So I have several submitted returns within the VAT section of QBO (which have in reality effectively been paid due to the payment plan).

In order to reflect this within Quickbooks, I thought I would "Record payment", and then select a suspense account to which I could then post the payments in line with the payment plan. However, it's not possible to specify an account within "Record payment" other than cash-in-hand types. I could create a new cash type account for this purpose but this feels improper! I'm wondering if there's a better way to go about this, or is this simply a limit of the VAT payment tracking features in QBO?

Thanks for any help!

Best answer by paul72

OK I've managed to make this work Paul - which is brilliant - but I have one last concern!

 

Having now successfully apportioned each quarter (refunds & payments) to each instalment, I now would expect to be able to reconcile each payment plan instalment from the Banking view.

 

However, I don't seem to be able to "find" these payments in order to reconcile. It seems the Find match search function doesn't include those VAT payments I've created via the Taxes page. Can you suggest what I should do? Should I record those instalment payments as a transfer to the VAT Suspense account, or create a journal entry to do the same (which I could then subsequently reconcile easily)?

 

Many thanks again - you've been a great help to me this sunny Saturday afternoon!


Hi @PickleRick 

 

Sorry - I've been working from home for a couple of days & unable to login to the community pages for some reason.

 

Glad you've got the VAT refunds/payments to work out.

When I saw the message that there were some refunds to consider I thought the only way would be to use a dummy bank account in QBO as an intermediate step (so I was intrigued when I saw you'd worked it out!).

 

The instalments certainly should be available in the bank account reconcile.

I don't actually use the automatic matching so I'm not sure on the steps for finding payments here.  What I'd probably do is go into the VAT Suspense account - find the payments in there & check that they're allocated to the correct bank account.

(I find that the VAT Payment screen has an irritating habit of defaulting alphabetically rather than using the default current account - it's caught me out several times)

1 reply

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Ashleigh1
May 27, 2022

Hello PickleRick, 

 

Welcome to the Community page, 

 

 If you have already made the payments then you can just use the record payment option in the taxes section and enter the dates you made the payments on. The VAT due is already in the VAT suspense account for you. 

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PickleRickAuthor
May 27, 2022

Hi Ashley,

Thanks for your suggestion but I'm not sure I've explained the situation well enough. The payment plan doesn't simply allow me to delay the payments (which as you suggest would allow me to simply record the payments as normal). In this case, the outstanding amounts have been summed together and then divided by a number of instalments, which results in a uniform amount to be repaid at an agreed interval.

I hope that explains the situation a bit better, and as to why my attempt to Record payment to a non-cash account might make sense.

Thanks again

M
MadelynC
May 28, 2022

I’m here to impart some information so you can track these payments in QuickBooks properly, @PickleRick.


When recording VAT payments in QuickBooks, you can manually enter the amount that matches the actual payments. This keeps your records accurate and intact.


Concerning the account, I recommend contacting your accountant for the best option. They can provide information and tips to reflect these amounts correctly in QuickBooks.


If you don’t have one yet, you can visit our ProAdvisor website to find an expert. They guide you further from technical and accounting perspectives. Simply enter your city or ZIP code.


Here’s a reference that contains steps to make a VAT adjustment and key things to remember before you submit a VAT return: Make VAT adjustments in QuickBooks Online.


Don’t hold back to drop a comment below if you have any other questions or concerns besides managing VAT payments. We'll always be here to help. Take care!

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